Penetrator with enhanced lateral effect(PELE) is a newconcept projectile, without dynamite and fuze. It consists of high-density jacket, closed at its rear end and filled with a low-density filling material. To study the explosion characteristics of PELE, by AUTODYN-3D code, the calculation models of projectile body and bullet target are established and the process of penetrating aluminum-2024 alloy target of PELE is simulated, and the scattering characteristics after penetrating aluminum-2024 alloy target of PELE are studied by different initial velocity. The explicit finite element analysis of PELE fragmentation was implemented with stochastic failure criterion in AUTODYN-3D code. As expansion of filling, the fragments were obtained velocities and dispersed laterally and further more enhancing the damage area largely. The number and shape of the PELE fragments were different depend on impact velocity and incidence angle of filling which fragment generated during penetration and lateral dispersion process.