The aim of this study is to investigate the effect of pre-existing, or structural, cracks on dynamic fragmentation of granite. Because of the complex behavior of rock materials, a continuum approach is employed relying upon a plasticity model with yield surface locus as a quadratic function of the mean pressure in the principal stress space coupled with an anisotropic damage model. In particular, Bohus granite rock is investigated, and the material parameters are chosen based on previous experiments. The equation of motion is discretized using a finite element approach, and the explicit time integration method is employed. The pre-existing cracks are introduced in the model by considering sets of elements with negligible tensile strength that leads to their immediate failure when loaded in tension even though they still carry compressive loads as crack closure occurs because of compressive stresses. Previously performed edge-on impact tests are reconsidered here to validate the numerical model. Percussive drilling is simulated, and the influence of the presence of pre-existing cracks is studied. The results from the analysis with different crack lengths and orientations are compared in terms of penetration stiffness and fracture pattern. It is shown that pre-existing cracks in all investigated cases facilitate the drilling process.