Micromechanical finite element modeling has been employed to define the failure behavior of S2 glass / BMI textile composite materials under impact loading. Dynamic explicit analysis of a representative volume element (RVE) has been performed to explore dynamic behavior and failure modes including strain rate effects, damage localization, and impedance mismatch effects. For accurate reflection of strain rate effects, differences between an applied nominal strain rate across a representative volume element (RVE) and the true realized local strain rates in regions of failure are investigated. To this end, contour plots of strain rate, as well as classical stress contours, are developed during progressive failure. Using a previously developed cohesive element failure model, interfacial failure between tow and matrix phases is considered, as well as classical failure modes such as fiber breakage and matrix microcracking. In-plane compressive and tensile loading have been investigated, including multi-axial loading cases. Highly refined meshes have been employed to ensure convergence and accuracy in such load cases which exhibit large stress gradients across the textile RVE. The effect of strain rate and phase interfacial strength have been included to develop macro-level material failure envelopes for a 2D plain weave and 3D orthogonal microgeometry.