The main objective of this work is to investigate the effect of shape memory alloy reinforcement in Kevlar polymer composites on mechanical and low-velocity impact properties. The sheet and wire forms of shape memory alloy (SMA-nickel-titanium alloy) are used as potential reinforcements in Kevlar-reinforced polymer composite. The developed composites were analyzed for tensile and flexural behavior. The effective bonding area, referred to as core density, contributes to incremental flexural strength in the SMA sheet reinforced composites. The developed composites exhibited better impact resistance during low-velocity impact tests at different velocities, 2.80, 3.96, and 4.85 m/sec, and simulated using a CEAST drop hammer testing machine. The impact surface of the specimen was studied on a micro-level using SEM analysis and macro-level using Image J software. The impact force, the energy absorbed, and the deformation of the specimen during impact were recorded and analyzed. The experimental results reveal that the SMA sheet reinforced Kevlar composites exhibited appreciable impact resistance with maximum energy absorbing capacity comparatively with plain Kevlar and SMA wire reinforced composites.