The development of electronic fuze has placed higher demands on encapsulation resins, which are required to provide not only insulation and protection, but also higher impact resistance and good electromagnetic shielding performance. A new composite material consisting of hollow glass microspheres (HGM) and modified epoxy resin was developed. This material exhibits significant electromagnetic shielding capabilities for terahertz (THz) waves, as well as superior impact energy absorption properties. Bisphenol A‐type epoxy resin (E‐44) was modified using Al(OH)3, red phosphorus, carbon black, and SiO2, and the material properties were optimized by adjusting the HGM content. The electromagnetic shielding effectiveness and impact energy absorption of the composite material in the THz band were comprehensively tested using THz time‐domain spectroscopy and split Hopkinson pressure bar testing systems. Additionally, a comprehensive evaluation of the mechanical and dielectric properties, thermal conductivity, and thermal stability of the material was conducted. The results showed that the electromagnetic shielding effect of 60 vol.% HGM hybrid‐modified resins was the best, reaching 43.78 dB. The 20 vol.% HGM hybrid‐modified resins not only has a specific absorption energy of 18.51 J/cm3, but also has the best overall performance. This work has advanced the design and development of multifunctional and impact‐resistant potting epoxy resins.