Nanostructured thermoplastic consisting of high-density polyethylene (HDPE) modified with exfoliated montmorillonite (MMT) was successfully used as the matrix for the development of composite for ballistic applications. The effect of HDPE and HDPE/MMT as the matrix on the mechanical and ballistic properties of para-aramid plain-woven fabric-based composites was compared with the commercial composite constituted by polyvinyl-butyral-phenolic resin as the matrix. The dynamic compressive tests using split Hopkinson pressure bar equipment revealed a remarkable increase of maximum compression strength, outstanding dynamic compressive response, and superior tenacity for the composite containing HDPE/MMT as the matrix. Moreover, the ballistic limit of the HDPE/MMT-based composite was the highest one. Mechanical failures indicated that this matrix was able to interact with a greater fiber volume and was responsible for improving the ballistic impact energy absorption. Thus, the use of MMT in thermoplastic matrix may be considered a promising ballistic solution due to the possibility of combining lightweight and ballistic resistance.