Tungsten alloy was adopted as the jacket of PELE widely up to now, but it had a series of disadvantages, such as inadequate obdurability, uncontrollable shape and amount of fragments, imperfect lateral damage effect, and so on. To solve the problem, tungsten fiber composite was brought forward to produce penetrator with enhanced lateral effect(PELE) jacket, and numerical simulations was carried out on the penetration process by PELE with tungsten fiber composite jacket. Results show that the penetrating performance and lateral damage effect of PELE with tungsten fiber composite jacket are superior to those of PELE with tungsten alloy jacket. Further, PELE with tungsten fiber composite has better damage performance, when the diameter of tungsten fibers is between 0.5-1 mm, the volume fraction of tungsten fibers is 40%-60%, and the binder phase is ferro-nickel alloy.