A new approach based on the concepts of the discrete element method coupled with adaptive remeshing techniques is presented for impact resistance of composites. The method is capable of analysing progressive fracture and fragmentation behaviour as well as potential post cracking interactions caused by the newly created crack sides and segments. Anisotropic Hoffman based models are used for predicting the imminence of a material crack or interlaminar delamination. Bilinear softening models incorporating both modes I and II are also adopted to ensure mesh independency of results. A local remeshing technique is adopted every time a new crack is formed, while an overall remeshing is performed anytime a certain criterion of error estimation is violated. The special local remeshing technique is designed to model geometrically an individual crack by splitting the element, separating the failed node, creating new nodes and dividing the neighbouring elements to preserve the compatibility conditions.