In the present work, finite-element-based sub-yarn-level modeling of the Kevlar® KM2 ballistic-fabric is carried out in order to help establish the relationships between the fabric penetration resistance and various fiber-level phenomena such as fiber-fiber friction, fiber twist, transverse properties of the fibers and the stochastic nature of fiber strength. In particular, a series of transient non-linear dynamics finite-element analyses was carried out of the transverse impact of a test patch of Kevlar® KM2 fabric by a solid spherical projectile, in order to investigate the role of the following two important sub-yarn phenomena on the penetration resistance of this fabric: (a) fiber-transverse properties including non-linear elastic and plastic response; and (b) stochastic nature of the fiber strength.