Nonmiscible fluid displacement without salt exchange takes place when oil-base mud (OBM) invades connate water-saturated rocks. This is a favorable condition for the estimation of dynamic petrophysical properties, including saturation-dependent capillary pressure. We developed and successfully tested a new method to estimate porosity, fluid saturation, permeability, capillary pressure, and relative permeability of water-bearing sands invaded with OBM from multiple borehole geophysical measurements. The estimation method simulates the process of mud-filtrate invasion to calculate the corresponding radial distribution of water saturation. Porosity, permeability, capillary pressure, and relative permeability are iteratively adjusted in the simulation of invasion until density, photoelectric factor, neutron porosity, and apparent resistivity logs are accurately reproduced with numerical simulations that honor the postinvasion radial distribution of water saturation. Examples of application include oil- and gas-bearing reservoirs that exhibit a complete capillary fluid transition between water at the bottom and hydrocarbon at irreducible water saturation at the top. We show that the estimated dynamic petrophysical properties in the water-bearing portion of the reservoir are in agreement with vertical variations of water saturation above the free water-hydrocarbon contact, thereby validating our estimation method. Additionally, it is shown that the radial distribution of water saturation inferred from apparent resistivity and nuclear logs can be used for fluid-substitution analysis of acoustic compressional and shear logs.