A combustion model of a solid propellant containing liquid oxidizer capsules was developed. The model is based on the combustion cycle of a unit cell, an oxidizer droplet surrounded by the adjusting amount of binder. Three combustion stages are considered: (1) binder decomposition parallel to oxidizer heating up to boiling temperature, (2) simultaneous binder and oxidizer gasification, and (3) gasification of the remaining condensed phase species. Simple global kinetics are assumed for the gas phase reactions and binder decomposition abiding Arrhenius law, and boiling process for the oxidizer abiding Clausius-Clapeyron curves. The obtained results show similar trends as do other relevant models and experimental results, especially for the effect of droplet size and propellant composition on the burn rate. The predicted effect of initial temperature on the burn rate is less significant than for common solid propellants. The results indicate that for small droplets the oxidizer will heat up to boiling temperature even before it is revealed on the burning surface, due to heat conduction through the surrounding binder.