To better understand mechanisms of fracture under impact loading in cellulose-reinforced polypropylene, dynamic fracture analysis was performed based on linear elastic fracture mechanics. Dynamic critical energy release rates and dynamic critical stress intensity factors were deduced from instrumented Charpy impact test measurements. Dynamic fracture toughness increased with cellulose content. However, the assumption of linear elasticity began to break down for cellulose fiber contents exceeding 40% by weight. Scanning electron microscopy showed considerable fiber curl in the composites, especially at low fiber contents; at high fiber contents, composites developed a three-layer structure.