S2-glass/epoxy composite laminates were made by varying the nanoclay content from 0-12% by weight and were subjected to low velocity impact at 50 J, 110 J and 150 J incident energy respectively. It is observed that at 50 J impact energy, which is below penetration limit of laminate the presence of nanoclay could not add any advantage in total energy absorption. As the impact energy increased to 110 J (near penetration limit), nano composite laminates have shown 37% improvement in energy absorption compared to pristine laminate. Composite with 9% nanoclay has shown optimum performance in terms of energy absorption, penetration limit velocity and decrease in maximum displacement. Further increase of impact energy upto 150 J (above penetration limit) has not resulted in any improvement in energy absorption. Post impact analysis reveals that the total damage area of laminates increased with increase in impact energy and nanoclay content. Fractured area of impacted laminates calculated and observed that the fractured area of laminate decreased with increase of nanoclay content. Present study highlights that besides optimum nanoclay content, optimum impact conditions also play a vital role in deriving benefits of nanocomposites.