This paper studies the damage morphology evolution of ultrahigh strength 7055 aluminum alloy plate under the hypervelocity impact of aluminum projectile, and analyzes the formation mechanism of crater morphology at different impact velocities. It is found that the impact crater evolves from spherical crown shape to spherical-conical composite shape, and eventually transforms into hemispherical shape with the increase of impact velocity. The evolution of crater shape is highly associated with the ratio of steady-state shock pressure and the strength of the alloy. The variation of crater diameter as a function of impact velocity follows the hypothesis of hemispherical theory, while the crater depth shows a great deviation due to the formation of conical region at the crater bottom and spall fracture at the back of the target. It is demonstrated that the formation of conical crater is related to the poor resistance to shear localization of 7055 aluminum alloy due to its low strain hardening capacity under dynamic loading. Hence, adiabatic shear bands are generated and evolve into shear cracks, thereby causing the formation of conical region at the crater bottom. It is suggested that the resistance to shear localization should be highly considered for the design, evaluation and selection of protection materials for spacecraft.