No-Drop/No-Trade is an item property which denotes that the item cannot be traded via the trade window and cannot be removed from a character's backpack, unless it is to place the item in a Trash Barrel. According to MrTact, the No-Drop/No-Trade system was added, "specifically to keep the event items unique."
On the whole, No-Drop/No-Trade items are quest items. The items obtained during or for the completion of a quest were never intended to be used for any other purpose. Therefore, a character cannot drop or trade them.
Some players have reported that they cannot get rid of No-Drop/No-Trade items at all. MrTact says:
- "As for not being able to trash these items - that’s not how they’re supposed to work. If you encounter this situation, please email  with the details."
Players with items stuck in their character's backpack are advised to
- try completing the quest that originally awarded the item
- try to put the item in a trash barrel, and
- finally, page a GM to help.
You can drop No-Drop/No-Trade items from your pack if you have the stealing skill ( JOAT will work ).
- This is possible by exploiting the backpack's 125 item limit. To drop the item, you'll need to fill your backpack with items until you've reached 125 items in your pack.
- Next, prepare an item that you can successfully steal ( 1 stone ), and place it in a secured container that you have access to, a pack mule's pack, or a friends backpack ( If you're in the thieve's guild ).
- Target the item you intend to steal ( Arms Lore, Dye Tub, or anything that provides a targeting cursor ).
- You'll need to have the stealing skill set to a keystroke, as well as a "last target" macro set to a keystroke.
- Pick up the item you wish to drop on the floor, and hold it with the cursor.
- Press the key that is bound to your stealing skill, followed by the key set to "last target".
- If you successfully steal the item, your pack will be at the 125 limit again, and you will not be able to place the item on your cursor back into your pack, thereby causing it to fall on the floor.
- A survey of game forums indicate that complaints related to the No-Drop/No-Trade system are largely that it is unrealistic.
- The developers acknowledge that No-Drop/No-Trade is, " a pain for those who want to display these items in your house. This is a feature we can look at adding in the future."