The influence of nanoclay on the impact damage resistance of carbon fiber-epoxy (CFRP) composites has been investigated using the low-velocity impact and compression after impact tests. The load-energy vs time relations were analyzed to gain insight into the damage behaviors of the materials. Compression-after-impact (CAI) test was performed to measure the residual compressive strength. The CFRPs containing organoclay brought about a significant improvement in impact damage resistance and damage tolerance. The composites containing organoclay exhibited an enhanced energy absorption capability with less damage areas and higher CAI strengths compared to those made from neat epoxy. A 3wt% phr was shown to be an optimal content with the highest damage resistance.