The Refaim system was designed for the advanced version of the Tavor but is compatible with any rifle, enhancing the accuracy, lethality agility and flexibility of the weapon. The system offers line of sight and beyond line of sight activity, around the corner viewing and shooting capability and embedded training and mission rehearsal functions.

Refaim uses an air-burst telescopic bullet trap rifle grenade with point detonation, time delay and self destruct functions. The fragmentation charge is optimized against infantry targets but can also penetrate vehicles and windows by utilizing a short time delay, thereby maximizing the effect behind or within cover. The system can also use an add-on grenade launcher such, such as the M-203. The airburst grenade uses a programmable time delay fuse which is set by the Multi-Purpose Rifle System (MPRS) fire control system designed by International Technologies Lasers (ITL).

The MPRS measures the range to the target, displays a corrected aiming point for proper elevation necessary for accurate firing, and automatically sets the time delay fuse in the grenade to activate the bomb just before impact, at a preset altitude over the target. The fuze can also be set to explode at a preset delay after an impact, to penetrate a soft target (a window, for example).

IMI is also developing two new submunitions for the Refaim. The MPRS has additional C4I functions, including a digital compass and laser pointer which provide effective battlefield coordination, as well as full integration into tactical command and control systems. Information from the system can be displayed at the team and squad level, neighboring forces such as tanks or helicopters, or link up to higher command echelons.

At LIC 2004 IMI unveiled an inert Refaim grenade with an embedded camera and communications link, which can send a view of the target as it descends to strike. This low cost system provides a "bird's view" of the target. The image is collected by the receiving unit and displayed to the user as a static image of the target, with various zoom options. The second new Refaim grenade is equipped with CS irritating gas, and is designed to provide security force effective non lethal means, fired at a range of a few hundred meters, over five times the distance currently used by CS grenades and canisters.