A finite element model with the consideration of damage initiation and evolution has been developed for the analysis of the dynamic response of a composite sandwich panel subject to low velocity impact. Typical damage modes including fiber breakage, matrix crushing and cracking, delamination and core crushing are considered in this model. Strain-based Hashin failure criteria with stiffness degradation mechanism are used in predicting the initiation and evolution of intra-laminar damage modes by self-developed VUMAT subroutine. Zero-thickness cohesive elements are adopted along the interface regions between the facesheets and the foam core to simulate the initiation and propagation of delamination. A crushable foam core model with volumetric hardening rule is used to simulate the mechanical behavior of foam core material at the plastic state. The time history curves of contact force and the core collapse area are obtained. They all show a good correlation with the experimental data.