A new kind of low collateral damage ammunition with Carbon fiber composite material casing is put forward. The operational principle of this ammunition and its configuration are introduced. Then the casting velocity of lethal unit and air shock wave pressure is analyzed theoretically and simulated. In order to study the effect of casing material on blast power, two different kinds of explosive charges are detonated. Overpressure curve of these two charges is measured using the pressure sensors. From the measured overpressure curve and theoretical simulation results, the duration of the positive pressure of the air blast pressure wave caused by the prototype model of the low collateral damage ammunition is bigger than the explosive charge with Carbon fiber composite material casing and naked explosive charge. From the high speed photography, the lethal units flight to a halt at a small distance. These results show the explosive charge with Carbon fiber composite material casing and metal powder can reduce destruction outside the radius of an intended target while enhancing its destructive force on the target.