Major performance challenges for deepwater applications from a drill bit standpoint were identified as (1) High surface torque in salt is one of the major ROP limiters. (2) Inability to control depth of cut in soft rocks including shale and salt and when drilling in interbedded formations results in torsional oscillations and stick-slip. (3) Improper combination of bit and reamer induces drillstring vibrations. This paper presents the development of new drill bit technologies combined with a new system matching analysis package to address those problems. Salt mechanical behavior was evaluated using triaxial testing under confining pressures up to 5,000 psi. Full scale pressurized testing was then conducted to evaluate salt drilling behavior versus rock characteristics. The following specific challenges were addressed: Non-planar PDC geometries were tested in salt, among other rocks, to identify a geometry which results in maximum increase in ROP at any given torque.New insert shapes were developed and tested for more effective and accurate depth of control.A full drillstring analysis model was developed with the ability to predict downhole and surface torque and WOB as well as drillstring dynamics, torque, and drag. The new shaped cutter full scale pressurized test resulted in an increase in ROP/torque ratio throughout the different rock and a 28% increase in salt. The cutter also increased ROP/WOB ratio by 42%. Furthermore, the new insert shapes proved to be more effective in controlling depth of cut, resulting in an extra 35% reduction in torque/WOB ratio compared to standard insert shapes. The project is now in field evaluation and the new drill string analysis tool has been applied to several field applications including some in the Middle East, North Sea, Gulf of Mexico, and the Caribbean for different purposes. Some of those purposes include buttonhole assempbly (BHA) selection for given bit and reamer, bit selection for a given BHA design and reamer, and drilling parameter optimization for a given BHA design, bit, and reamer. New insert shapes were run in multiple applications in North America, including in North Dakota and Oklahoma, with promising results proving that although the project was focused on deepwater drilling challenges, the novel solutions are applicable to a wide range of applications.