Impact loads lead to the failure of structures and significantly diminish their operational lifespan. The necessity to enhance impact performance has shown gradual progress, resulting in utilising nano-fillers as an additional reinforcement within the matrix. Despite the significant number of studies that have been done on this unique hybrid material, there have only been a few reviews published that discuss the effect of production processes on mechanical properties and performance in these hybrid composites under projectile impact. There have been conflicting results obtained in experimental results from the literature. The disparity is related to the variation in dispersion, bonding states, and inconsistent fabrication processes. This work defines the pros and cons of carbon nanotube (CNT)-based composites along with a systematic representation of the development of CNT-reinforced composites under projectile impact using experimental, analytical, and numerical techniques. The potential of CNT reinforcement on fibre-reinforced polymers (FRPs) and its effect on mechanical properties have been discussed. Furthermore, different impact test setups are explored to determine the effective method to determine the impact performance of CNT-reinforced laminates. Moreover, the impact of surface treatment is discussed using different non-destructive methods, and the influence of CNT reinforcement is determined. In addition, mechanical and impact response with varying configurations of fibres is gathered from the available literature, and optimal design based on the required application is suggested. Also, analytical methods developed to determine the impact response of laminates are discussed to determine the parameters dominating the impact response of the laminate. This review will help researchers find the right combination of FRP materials for a given application.