Increasing numbers of 'smart' and instrumented wells are being completed worldwide. Many of these types of completions will require perforating as part of the initial completion and many more may require perforating at some time during the life of the well. Even completions that do not require perforating, such as common packer/sliding sleeve open hole completions, still rely on perforation technology to provide a back up contingency. This paper identifies challenges and methods developed to mitigate problems associated with and to enable perforating instrumented and smart wells. This paper will also review the tools and techniques available to perforate these types of completions, while avoiding damage to pipe external control lines, cables, gauges, fiber optic lines, and other critical completion equipment. Discussions will cover a brief history and limitations of currently available tools and techniques. Details of testing and tool developments will be discussed followed by lessons learned from a multi-well field program.The instrumented 'smart well' development program discussed in this paper includes six wells ranging from a 2,600' measured depth vertical well to 3 horizontal completions with measured depths exceeding 16,000'. The program included running over 20 logs ranging from magnetic based detection tools to ultrasonic tools, and perforating 129 separate intervals. Results of testing available tools and details of development of new equipment, tools and techniques will be discussed. No external cables or other smart well components were damaged during the 129 perforating operations.