In various engineering projects such as mineral extraction, hydropower resource utilization, railway construction, and geological hazard mitigation, rock engineering is often encountered. Furthermore, dynamic loads and moisture content exert notable influence on the energy transformation processes within rocks. Yet, the specific interplay of dynamic loading and water's impact on the energy conversion mechanism within the sandstone remains unexplored. To address this gap, this study conducted impact loading experiments on sandstone, elucidating the rock’s mechanical response under these conditions and unraveling the underlying energy conversion mechanisms. It was observed that the strength of sandstone exhibits a direct correlation with impact velocity. Moreover, employing energy calculation principles, we established a connection between moisture content and the sandstone’s internal energy conversion properties. The study also delved into the microscopic fracture mechanisms within the sandstone, ultimately concluding that both water content and dynamic loading have a significant impact on these microscopic fracture mechanisms.