Experiences of past earthquakes demonstrate that pipeline systems have no proper performance when exposed to severe earthquakes. In this study, sensor and damper placement approaches are presented for doing reliable health monitoring and seismic retrofitting of the piping networks. Since most of the available sensor placement methods are based on modal analysis results, the authors propose a new scheme that relies on the nonlinearity which utilizes nonlinear time history analysis results, and genetic algorithm is selected to act as the methodology of optimization as well. The results demonstrate that the proposed optimal sensor configuration strategy is more accurate and efficient than the extended modal assurance criterion method. To assess the number of sensors, a sensitivity analysis is undertaken in which the number of sensors computed optimally by the proposed algorithm contains the least convergence error. In addition, the number of iterations and the time consumed in the proposed approach are considerably less than the extended modal assurance criterion method. Moreover, the efficiency of the proposed sensor placement scheme was compared with a new algorithm proposed by Sun and Büyükö ztürk, named discrete artificial bee colony, where the simulation result demonstrates high accuracy of the proposed sensor configuration approach. The initial time history analysis results show the vulnerable points of the system, which destroyed due to the applied seismic waves. Hence, to enhance the seismic performance of the system, piezoelectric friction dampers are optimally placed, where it can be clearly seen that the optimal arrangement of piezoelectric friction dampers in the piping system can significantly decrease the seismic response.