Composite material that contain epoxy resin which is toughened and strengthened with thermoplastic materials and a blend of insoluble particles. The uncured matrix resins include an epoxy resin component, a soluble thermoplastic component, a curing agent and an insoluble particulate component composed of elastic particles and rigid particles. The uncured resin matrix is combined with a fibrous reinforcement and cured/molded to form composite materials that may be used for structural applications, such as primary structures in aircraft.