The present study concentrates on development of conceptual proof for sisal reinforced polymer matrix composite for structural applications subjected to low velocity impact using a finite element (FE) approach. The proposed sisal-epoxy composite of various thicknesses of 3.2 mm, 4 mm and 4.8 mm is subjected to different impact velocities of 1 m/s, 2 m/s and 3 m/s ranging in the low velocity impact regime to study the energy absorbed and damage mitigation behaviour of the proposed composite. The consequence of velocity of impact and thickness of laminate on the sisal epoxy composite’s impact behaviour is assessed statistically using Taguchi’s experimental design. Outcome of the present study discloses that the energy absorption increases with increased impact velocity and laminate thickness. However, the statistical study shows that impact velocity is predominant factor affecting the impact response of sisal epoxy composite laminate compared to laminate thickness. The role of matrix and fiber in damage initiation is studied using Hashin criteria and it is found that matrix failure is predominant over the fiber failure.