Over the last 15 years working in the mining, construction and extractive industries, one of the areas that has always concerned and at the same time drawn the author to it is the application of drilling and blasting in the underground development mining and civil construction tunnelling fields. In that time, the author has come across many drives and tunnels that are larger than design or badly damaged in the perimeter or both. When the question is asked as to why this is the case, the reply is generally that's the way it is and always has been'. Sometimes it is blamed on bad ground, bad drilling, bad explosives, bad initiation or just plain bad. Most operators build a dilution factor into development and tunneling costs as an acceptance of overbreak and similarly pattern bolt everything to overcome excessive perimeter damage. This paper will attempt to unravel some of the mysteries behind perimeter drilling and blasting in underground drives and tunnels and discuss methods to reduce overbreak and therefore reduce costly dilution and to minimise perimeter damage which in turn will allow more cost-effective ground support. It should not be assumed that better drilling and blasting alone would automatically allow an operation to reduce ground support. The operator must still read' the ground and its characteristics in order to ensure sufficient ground support is placed to allow the operation to progress safely. This paper will not go into the intricacies of bolting, meshing, shotcreting, concreting and other ground support, but it will use indicative costs for the primary areas of drilling, explosives, excavation and labor to show the magnitude of cost-efficiencies which can be obtained through improved drilling and blasting applications. Drill and blast remains the most flexible and cost-effective method of underground excavation as long as it is applied safely and effectively.