Conventional composites are susceptible to impact loading due to their low toughness. Novel annealed steel fibres possess a unique combination of high stiffness and high strain to failure. A range of composite laminates incorporating various steel fibre architectures with thermoplastic and thermoset matrices were produced and the low-velocity penetration impact resistance was characterized by falling weight impact tests, showing the high potential toughness of steel fibre composites. The effect of different parameters was determined. High matrix strain to failure allows a better exploitation of the steel fibre ductility. The higher absorbed energy up to penetration, in case of laminates with lower levels of fibre/matrix adhesion is attributed to fibre debonding, potential for more plastic deformation, and pull-out mechanisms. Thinner fibres are more sensitive to premature failure due to inclusions in the steel fibres. Cross-ply laminates show higher energy absorption, probably due to increased delamination, whereas woven fibre structures lead to more localized damage. A preliminary study shows that layer by layer (‘macro’) hybridization of carbon and steel fabrics leads to penetration impact resistance close to the pure steel fibre composite, in case the steel plies are placed on the outside surfaces, showing a significant positive effect of hybridization.@en