Network ACLs are like gatekeepers for your subnet's traffic. When a packet arrives, the ACL checks its rules in order. If the packet matches a rule, it is either allowed or denied based on that rule. If no rules match, the packet is denied by default. This process happens separately for inbound and outbound traffic because Network ACLs do not remember previous decisions (they are stateless). For example, if inbound TCP port 80 traffic arrives, it matches an allow rule and passes. But inbound TCP port 22 traffic does not match the allow rule and is denied by a later deny rule. Outbound traffic is checked similarly. Understanding this step-by-step helps you control your network traffic securely.