Annese’s lay opinion testimony is rationally based on the witness’s perception and therefore satisfies the first prong of N.J.R.E. 701. Based on Annese’s extensive contacts with defendant, the absence of any other identification testimony, and the quality of the surveillance photograph, the testimony meets the second requirement of N.J.R.E. 701 because it will assist the jury in determining a fact at issue in defendant’s trial. Sanitized to avoid disclosure of defendant’s status as a parolee at the time of his alleged offense, Annese’s lay opinion testimony will not be so prejudicial that its probative value is substantially outweighed by the risk of undue prejudice, and that testimony should not be excluded under N.J.R.E. 403. The Court concurs with the Appellate Division that the trial court abused its discretion when it barred Annese’s lay opinion testimony.