A theoretical base of SPH method, including the governing equations, discussion of importance of the smoothing function length, contact formulation, boundary treatment and finally utilization in hydrocode simulations are presented. An application of SPH to a real case of large penetrations (crater creating) into the soil caused by falling mass in Dynamic Replacement Method is discussed. An influence of particles spacing on method accuracy is presented. An example calculated by LS-DYNA software is discussed. Chronological development of Smooth Particle Hydrodynamics is presented. Theoretical basics of SPH method stability and consistency in SPH formulation, artificial viscosity and boundary treatment are discussed. Time integration techniques with stability conditions, SPH+FEM coupling, constitutive equation and equation of state (EOS) are presented as well.