In this investigation, the fiber-reinforced composite plates subjected to low velocity impact are studied by the use of finite element analysis (FE). To predict matrix cracking, the dynamic stress analysis is carried out by the use of a constitutive equation of composite laminates without damage. The impact induces damage at higher impact velocity including matrix cracking is predicted by the appropriate failure criteria. The present results indicate that matrix cracking appears in the upper 90° plies with the dominance of transverse shear stress. The shape and dimensions of the cracked surfaces of different layers of a composite plate are numerically simulated. The cracked surface of the first layer increases in the time. At time, the cracked surfaces of the first two and last two layers are similar in the shape and dimensions. It is revealed also that at time elements located far from the contact point are also affected by cracking. These elements tend to disappear starting from the first layer at the last layer.