In this paper, perforations of 12mm thick Weldox 460E steel plates by 20mm diameter blunt projectiles are simulated based on Two-dimensional Smoothed Particle Hydrodynamics method (SPH), and the modified Johnson–Cook (MJC) material model is adopted. To describe the shear plugging process, the particle approximation between different materials is canceled, and only the particle contact model based on the principle of conservation of momentum is applied. Then the separation of projectile and plug is simulated successfully, which is consistent with the experimental observations. Furthermore, it can be found that the particle size has a great influence on the calculation by comparing the effects of the different SPH particle sizes on plugging calculations. In general, the smaller the particle size is, the greater the residual velocity of projectile is. The residual velocities are tending towards stability as the decrease of particle size. Taking computational efficiency and accuracy into consideration, 0.033 (size=0.4mm) is the most appropriate dimensionless particle size. Then, the effect of target thickness on perforation is conducted, which shows that the target thickness has certain influence on the global deformation of target. Moreover, the sensitivity of MJC material constants on the residual velocity of projectile is also analyzed and discussed using orthogonal experimental design method and the range analysis method. The results indicate that the most sensitivity parameter is yield strength A, followed by strain hardening modulus n and strain hardening exponent B.