Drilling in permeable formations, especially depleted reservoirs, can particularly benefit from simultaneous wellbore shielding and strengthening functionalities of drilling mud compounds. The ability to generate simultaneous wellbore shielding and strengthening in reservoirs has potential to widen stable mud weight windows to drill such reservoirs without the need to switch from wellbore strengthening compound to wellbore shielding compound, and vice-versa. Wellbore shielding and strengthening experiments were conducted on three outcrop sandstones with three mud compounds. The wellbore shielding stage was conducted by increasing the confining and borehole pressures in 4-5 steps until both reached target pressures. CT scan images demonstrate consistency of the filtration rates with observed CT scanned mud cakes which are dependent on the sandstone pore size and mud compound particle size distributions. In wellbore strengthening stage, the borehole pressure was increased until fracture was initiated, which was detected via borehole pressure trend and CT scan imaging. The fractures generated were observed to be plugged by mud filter solids which are visible in the CT scan images. The extent of observed fracture solid plugging varies with rock elastic properties, fracture width and mud compound particle size distribution. Based on the laboratory test data, fracture gradient enhancement concept was developed for the mud compounds. In addition, the data obtained and observations from the tests were used to develop optimal empirical design criteria and guidelines to achieve dual wellbore strengthening and shielding performance of the mud compounds. The design criteria were validated on a well which was treated with one of the mud compounds based on its mud loss events during drilling and running casing.