The DROP target does just what it says, it drops packets dead and will not carry out any further processing. A packet that matches a rule perfectly and is then Dropped will be blocked. Note that this action might in certain cases have an unwanted effect, since it could leave dead sockets around on either host. A better solution in cases where this is likely would be to use the REJECT target, especially when you want to block port scanners from getting too much information, such as on filtered ports and so on. Also note that if a packet has the DROP action taken on it in a subchain, the packet will not be processed in any of the main chains either in the present or in any other table. The packet is in other words totally dead. As we've seen previously, the target will not send any kind of information in either direction, nor to intermediaries such as routers.
Works under Linux kernel 2.3, 2.4, 2.5 and 2.6.