The purpose of this paper is twofold. First, to report on a preliminary study conducted to determine the effect of confined vibrations on the sensor and actuator optimization based on their location and number. Second, to introduce a preliminary design methodology to incorporate confined vibrations in the design stage of the sensor/actuator arrays used in smart structures. It is clearly demonstrated that confinement has a significant impact on the optimization of sensors and actuators. The proposed optimization procedure and design methodology are proven to be effective in addressing some of the important issues surrounding this subject.