A systematic study of impact-induced fracture in a quasi-isotropic laminated composite is carried out. The main focus of the study is to understand damage initiation when a laminate is subjected to the impact of a foreign object. The total incipient damage of a laminate subjected to impact at higher than threshold velocity is also presented. The incipient damage is restricted to small growth from the initiation of the damage. The experimentally collected data are interpreted using a two-dimensional plane-strain finite-element analysis. The qualitative comparison suggests that the skew cracks in the proximal layers are primarily due to transverse shear stress. Skew cracks in the middle layers are also due to transverse shear stress. Vertical cracks in the distal layer are due to flexural stress transverse to the fiber orientation of the layer.