The Smoke Grenade is a non-lethal grenade that has a timed detonation which release smoke plumes that cover a area with high density smoke, obscuring the area. Though some smoke plumes can have damaging effects, this one in Goldeneye does not however. Smoke grenades can produce various colour, but standard grenades produce a normal grey smoke. Smoke grenades are used for Signalling, clearing a room, blinding the enemies sight and protecting you team from enemy vision.
The smoke grenade is unlocked at level 6 by added the distraction perk to you loadout. You can use Smoke Grenades either offensively or defensively, though it is primarily used for defensive purposes. Once the grenade is thrown at the desired target, the trigger unleashes a cloud of smoke that obscures an area allowing players to move through it without being detected by their enemies, although the large smoke cloud does attract a lot of attention. A good tactic to use in multiplayer is to smoke a room, just like a flashbang, and breach it and wipe out all enemies inside. You can also use it as a distraction to stear the enemies attention somewhere else. As a defensive tool, if you're being pinned down, smoke your current area so the enemy won't be able to see your movements. Also if your capturing or camping at a certain area, smoking the position can decrease the enemies focus and reaction time, giving you a oppurtunity to shot them first. The smoke grenade is also useful for snipers, as the smoke is transparent to a thermal scope. This will give the sniper a few seconds to snipe, while only being vulnerable to blind fire from opponents, but be careful, as an enemy with a thermal scope of his own will quickly home in on the cloud, in hopes of having an advantage in the ensuing conflict.