The structural integrity and monitoring of load distributions in composites are critical for safety and economic efficiency but still challenging. Herein, zinc oxide nanowires (ZnO NWs) were embedded into a carbon fiber-reinforced composite serving as mechanical reinforcement and sensing components. The presence of ZnO NWs in the composite material increased the flexural strength, interlaminar, and interfacial shear strength by respectively 4.9 %, 8.8 %, and 19.9 % due to the strong bonding at the fiber/resin interface and the mechanical interlocking effect. Additionally, the piezoelectric nature of ZnO NWs with an asymmetric crystal structure generated piezoelectric charges under stress, thereby enhancing the sensitivity of capacitive monitoring. A self-developed algorithm was then designed to analyze the array capacitance changes collected from the prepared composite laminate to determine the impact load with high precision with an error margin of 3 mm and not exceeding 0.25 MPa. Furthermore, damage was also able to be detected by monitoring capacitance changes. Overall, the proposed high-precision and minimally aggressive approach for load localization and quantification provides a promising direction and strategic pathway for the development of smart self-monitoring composites.