Composite laminates are made of glass woven roving mats of 610gsm, epoxy resin and nano clay which are subjected to projectile impact. Nano clay dispersion is varied from 1% to 5%. Impact tests are conducted in a gas gun setup with a spherical nose cylindrical projectile of diameter 9.5 mm of mass 7.6 g. The energy absorbed by the laminates when subjected to impact loading is studied, the velocity range is below ballistic limit. The effect of nano clay on energy absorption in vibration, delamination and matrix crack is studied for different weight % of nano clay and for different thickness values of the laminates. The natural frequencies and damping factors are obtained for the laminates during impact and the effect of nano clay is studied. The results show considerable improvement in energy absorption due to the presence of nano clay. © 2015, Brazilian Association of Computational Mechanics. All rights reserved.