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Ali's home was searched for six days |
One document found at Abdulla Ahmed Ali's flat in Walthamstow, east London, said no deed would give "rewards" like an act of jihad, jurors were told.
Another said defeating the enemy meant striking "terror into their hearts", Woolwich Crown Court heard.
Eight men deny conspiring to murder and endangering planes in August 2006.
They are accused of planning to detonate home-made bombs disguised as soft drinks on several transatlantic flights.
'Psychology of war'
The court was shown photographs of the six-day search at the home of Mr Ali, 27, on 9 August 2006.
Jurors were told police found papers containing passages relating to jihad [holy war], martyrdom, references to the kuffar [non-believers] and achieving jannah [paradise].
One read: "No deed is better than jihad and no deed will give you such rewards and rectify you."
Another said: "The psychology of war is that you can defeat your enemy if you take away that which they love the most and strike terror into their hearts.
 All eight men deny conspiring to blow up planes |
"With martyrdom operations they achieve that as the most beloved thing is life and wealth. When your enemy is not scared to die it scares you."
Other material, including books on the life of the Prophet Mohammed, a guide on disabled access to sites in London, a chemistry textbook and banking documents, was also found, prosecutors said.
Earlier, shop worker Showkoth Uddin told the court how he wrapped up four glass measuring jars bought by another of the defendants.
The prosecution claims Arafat Waheed Khan, 26, also of Walthamstow, east London, bought the items, as well as syringes and needles, at John Bell & Croyden pharmacy in central London in July 2006 in preparation for the alleged airline bomb plot.
Another of the shop's employees, Adbul Rahman, said Mr Khan re-visited the pharmacy the following day to return the four glass jars and instead bought two 250ml conical jars.
The defendants are Mr Ali, Mr Khan, Assad Sarwar, 24, of High Wycombe, Bucks, Tanvir Hussain, 27, of Leyton, east London, and Waheed Zaman, 23, of Walthamstow, east London.
Also charged are Mohammed Gulzar, 26, of Barking, east London, Ibrahim Savant, 27, of Stoke Newington, north London, and Umar Islam, 29, of Plaistow, east London.
The trial continues.