Woven fiber composites are currently being investigated due to their advantages over other materials, making them suitable for low weight, high stiffness, and high interlaminar fracture toughness applications such as missiles, body armor, satellites, and many other aerospace applications. Damage characterization of woven fabrics is a complex task due to their tendency to exhibit different failure modes based on the weave configuration, orientation, ply stacking and other variables. A multiscale model is necessary to accurately predict progressive damage. The present research is an experimental study on damage characterization of three different woven fiber laminates under low energy impact using Fiber Bragg Grating (FBG) sensors and flash thermography. A correlation between the measured strain from FBG sensors and the damaged area obtained from flash thermography imaging has been developed. It was observed that the peak strain in the fabrics were strongly dependent on the weave geometry and decreased at different rates as damage area increased due to dissimilar failure modes. Experimental observations were validated with the development of a multiscale model. A FBG sensor placement model was developed which showed that FBG sensor location and orientation plays a key role in the sensing capabilities of strain on the samples.