The prime aim of this work is to enhance the energy absorbing capabilities of e-glass/epoxy composite under low velocity impact using plasticizing modifiers. Epoxy terminated polyol at 5–15 phr loading levels as plasticizing modifier was mixed into two-phase SC-15 epoxy resin system by a high speed mechanical stirrer. Modified epoxy resin system was then used to fabricate E-glass/epoxy composites by hot press processing. Low velocity impact test at two different energy levels was carried out to investigate the effectiveness of incorporating plasticizing modifier on impact properties of these composites. In addition, three point bend test was also conducted to examine the effects on flexure properties with plasticizing modifiers. Incorporation of epoxy terminated polyol in E-glass/epoxy laminates proved efficient with a significant improvement of 23% in impact energy absorption capability over control counterpart. On the other hand, flexure strength and modulus has been decreased upon polyol loading whereas failure strain has been increased. The flexible polymer chain of polyol group inserted between epoxy molecules by chemical reaction enhances the ductility of the composites and reduces the number of cross-linking. Hence, energy absorption capability or overall toughness was found to increase with a slight reduction of peak strength and flexure strength and stiffness.