The effect of matrix cracking on the delamination morphology inside carbon fiber reinforced plastics (CFRP) laminates during low-velocity impact (LVI) is an open question. In this paper, the relationship between matrix cracking and delamination is studied by using cross-ply laminates. Several methods, including micrograph, C-scan, and visual inspection, were adopted to characterize the damage after LVI experiments. Based on the experimental results, finite element (FE) models were established to analyze the damage mechanisms. The matrix cracking was predicted by the extended finite element method (XFEM) and the Puck criteria, while the delamination was modeled by cohesive elements. It was revealed that the matrix crack in the bottom ply not only promoted the outward propagation of delamination but also contributed to the narrow delamination beneath the impact location. Multiple matrix cracks occurred in the middle ply. The ones close to the plate center initiated the delamination and prevented large-scale delamination beneath the impact location. For the cracks that were far away, no significant effect on delamination was found. In conclusion, the stress redistribution caused by the crack opening determines the delamination.