This review paper initially summarizes the latest developments in impact testing on polymer matrix composites collating the various analytical, numerical, and experimental studies performed since the year 2000. Subsequently, the scientific literature investigating nanofiller reinforced polymer composite matrices as well as self-healing polymer matrix composites by incorporating core-shell nanofibers is reviewed in-depth to provide a perspective on some novel advances in nanotechnology that have led to composite developments. Through this review, researchers can gain a representative idea of the state of the art in nanotechnology for polymer matrix composite engineering, providing a platform for further study of this increasingly industrially significant material, and to address the challenges in developing the next generation of advanced, high-performance materials.