An attachment algorithm for the coupling of smoothed particle hydrodynamics (SPH) and finite element method (FEM) is proposed to take advantage of the best properties of both methods. In the SPH-FEM attachment algorithm, SPH particles are attached to finite element nodes in the coupling interface. Any FE node that is in the support domain of SPH particle is added to the SPH neighbor list in the mode of background particle, and the continuity of coupling interface is guaranteed. The attachment algorithm allows for the use of accurate and efficient finite elements in mildly distorted regions and SPH particles in highly distorted regions within a Lagrangian framework. The perforation of a cylindrical Arne tool steel projectile impacting a Weldox 460 E steel target plate is simulated in 3D to demonstrate the performance of the SPH-FEM attachment algorithm. A corrected Johnson–Cook model containing damage variable is adopted for the target plate, with a Gruneisen EOS for the volumetric response. A birth and death particle algorithm is adopted to remove the damage particle from the model. Good agreement between numerical simulations and experimental observations is obtained.