An abrasive perforator tool with a bypass flow channel. Two valve sleeves are slidingly mounted inside a tool housing for sequential deployment. The valve sleeves may be arranged end-to-end and may be sealed to the inside diameter of the housing. Each of the valve sleeves may be telescopically mounted in a retainer sleeve and releasably secured in the undeployed position. When the valve sleeves are ball-actuated, the ball seat in the first valve sleeve may be at the lower end of the sleeve. Initially, with both sleeves in the undeployed position, fluid flows straight through the main bore and out the outlet end. When the first valve sleeve is deployed, fluid is redirected to the nozzles for perforating, and subsequent deployment of the second valve sleeve blocks the nozzles and opens the bypass channel to reestablish flow out through the bottom of the tool.