Composite laminates are susceptible to impact events during use and maintenance, affecting their safety performance. Edge-on impact is a more significant threat to laminates than central impact. In this work, the edge-on impact damage mechanism and residual strength in compression were investigated using experimental and simulation methods by considering variations in impact energy, stitching, and stitching density. The damage to the composite laminate after edge-on impact was detected in the test by visual inspection, electron microscopic observation, and X-ray computed tomography techniques. The fiber and matrix damage were determined according to the Hashin stress criterion, while the cohesive element was used to simulate the interlaminar damage. An improved Camanho nonlinear stiffness discount was proposed to describe the stiffness degradation of the material. The numerical prediction results matched well with the experimental values. The findings show that the stitching technique could improve the damage tolerance and residual strength of the laminate. It can also effectively inhibit crack expansion, and the effect increases with increasing suture density.