Recently, UHMWPE fabric and composites have gained attraction in ballistics due to their impressive strength-to-weight ratio and impact resistance. This article provides a critical analysis of internal and external factors influencing the impact response of UHMWPE fabric and composites. Damage mechanisms in UHMWPE yarns, fabrics, and composites are explored, which reveals the influence of internal factors like fibre properties, resin characteristics, interphase properties, and composite architecture on impact resistance. Further, the influence of external factors such as projectile type, environmental conditions, and impact velocity are discussed. The review also discussed methods employed by researchers to enhance the energy-absorbing capacity of UHMWPE fabric and its composites, focusing on improving interphase characteristics and friction between woven fabric yarns. Concluding with insights into future research, the review underscores the necessity of advancing studies to augment UHMWPE fibre's energy absorption resistance, expanding its applications in aerospace, automotive components, protective gear, and ballistic protection.