<p>To reveal the influence of microstructure and adiabatic shear band (ASB) characteristics on the ballistic performance of Ti-555 armored titanium alloy, microstructure and microscopic damage characteristics were analyzed by using optical microscope, scanning electron microscope, and electron backscatter diffraction. By comparing the target test results and observing the failure position on the target plates, it was found that the ballistic performance and the behavior of the crack propagation induced by the ASB were disparate in different microstructure types. Equiaxed and duplex microstructures have higher plasticity; the ASB and the matrix have better coordinated deformability, showing better ballistic performance. For Ti-555 titanium alloy, a faster cooling rate is beneficial for achieving better matching of strength and plasticity and promoting the deflection of the crack during propagation. At the same time, increasing the proportion of the <i>β</i> phase, the number of large-angle grain boundaries, and the aspect ratio of the <i>α</i> phase in the microstructure will be conducive to the improvement of the ballistic performance.</p>