This study compares the impact damage response and self-healing potential of unstitched and stitched glass/polypropylene (PP) fiber reinforced thermoset composite structures. The novelty of this study is weaving preforms with an intra-ply hybridization of glass and thermoplastic PP fibers and stitching these preforms with a unique stitching pattern by considering the effect of stitching fiber types (PP, Kevlar®, Dyneema®, carbon and silk) on impact damage response and self-healing potential of composites. The mechanical properties of the stitching fiber influenced the composite’s behavior against impact and compressive loads. The unstitched composite deflected more than stitched composites under the same impact energy levels due to delaying of delamination via stitching process. The stitching process reduced the damage areas of composites subjected to 30 J and 60 J impact energies by 57 and 86%, respectively. Structural healing significantly decreased the damaged areas of both unstitched and stitched composite structures up to 87%, while it was more effective on stitched composites. The polypropylene melted and accumulated along the path of the stitch pattern, regardless of whether the stitching fiber was thermoplastic. Due to the reduced impacted area, compression after impact (CAI) strength retention of the stitched composite materials increased by up to 94%.