The SPH (Smoothed Particle Hydrodynamics) solver of the AUTODYN-3D was utilized to demonstrate a remarkable numerical simulation of shaped charges, specifically the process of jet formation and target penetration. A shaped charge consists of an explosive, a case and a conical liner. The Euler solver has been generally utilized for the simulation of the liner collapse process. Though the axi-symmetric modeling of the liner usually is selected, the actual jet formation process is never so idealistic. When we choose options consistent with live fire experiments, the SPH solver produces a more accurate solution over the Euler approach. The SPH method is capable of dealing with problems, including the free surface, deformable boundaries, moving interface and extremely large deformation. Calculated hypervelocity particles using the SPH method precisely represented the actual observed jet formation profiles of shaped charge characteristics. Accurate representations of the jet velocities, a velocity gradient with the tip traveling much faster than the trail and phase changes of the liner material were demonstrated. Using the calculated jet particles from the SPH method, the penetration process was simulated. The calculation was very time-consuming and the results did not conform to the traditional theories of the penetration. We have been investigating this discrepancy.