The IC failures induced by accidental dropping event of modern handheld electronic devices such as mobile phones may result from various failure modes such as cracking of package(PKG), solder joint, etc. Generally, the board level drop test is normally adopted to evaluate the IC failure risk instead of the set level drop test considering cost and efficiency. Recently, however, the chip crack/damage failure rate in board level drop is much lower than that of mobile set level free drop. In this paper, a comprehensive study was performed to investigate the dynamic response characteristics of drop test with a customized PCB board when subjected to board level drop test and set level free drop test. The board level drop test was carried out according to JEDEC standard using a drop test apparatus, and the set level free drop test was employed by using the free drop machine. Moreover, two Finite Element models with reference to board level drop and set level free fall drop tests were developed to simulate the actual drop test scenarios based on two simplified FEA methods (Input-G method and impact velocity method, respectively). The simulation data were compared with experimental outputs to identify the FE Models in terms of accuracy of the results extracted. The dynamic key parameters of typical locations in PCB were analyzed to characterize performance difference during two kinds of drops. The measured and simulated data of corresponding locations in set level drop are all larger than those of board level drop in terms of impact acceleration intensity and duration, the strain response and the simulated chip stress. Comparing with board level drop response, a greater acceleration impact would induce a greater strain response, subsequently, the stress subjecting to chip of IC package is greater during set level free drop. Thus, we can conclude that the impact effect of set level free drop is severer than that of board level drop from experiment and simulation results, this can give a good explanation for the fact that failure rate of board level drop is much lower than that of set level drop.