This paper aims to estimate the enhancement in the energy absorption characteristics of the glass fiber reinforced composites (GFRP) by embedding prestrained pseudo-elastic shape memory alloy (SMA) that was used as a secondary reinforcement. The pseudo-elastic SMA (PE-SMA) embedded were in the form of wires and have an equiatomic composition (i.e., 50%-50%) of nickel (Ni) and titanium (Ti). These specimens are fabricated using a vacuum-assisted resin infusion process. The estimation is done for the GFRP and SMA/GFRP specimens at four different impact velocities (65, 75, 85, and 103 m/s) using a gas-gun impact set-up. At all different impact velocities, the failure modes change as we switch from GFRP to SMA/GFRP specimen. In the SMA/GFRP specimen, the failure mode changed from delamination in the primary region to SMA-pull out and SMA deformation. This leads to an increase in the ballistic limit. It is observed that energy absorbed by SMA/GFRP specimens is higher than the GFRP specimens subjected to the same levels of impact energy. To understand the damping capabilities of SMA embedment, vibration signals are captured, and the damping ratio is calculated. SMA dampens the vibrations imparted by the projectile to the specimen. The damping ratio of the SMA/GFRP specimens is higher than the GFRP specimens. The damping effect is more prominent below the ballistic limit when the projectile got rebounded (65 m/s).