High strength and high toughness Ti-alloy with damage tolerance is an important research direction of high strength titanium alloy. This work researched and reviewed the relationship among tensile strength, fracture toughness and impact toughness of 1200 MPa high strength and high toughness Ti-5321 alloy with damage tolerance. Microstructure greatly affects the tensile strength, fracture toughness and impact toughness. Lamella microstructure has good matching among tensile strength, plasticity, fracture toughness and impact toughness. Bimodal microstructure also has good matching among tensile strength, plasticity and fracture toughness, while its impact toughness is low. Based on the microstructure evolution, the changing laws of tensile strength, fracture toughness and impact toughness were analyzed. The future research direction for high strength and high toughness Ti-alloy with damage tolerance was proposed.