What is the order in which GPOs are applied ?

Group Policy settings are processed in the following order:

1.Local Group Policy object : Each computer has exactly one Group Policy object that is stored locally. This processes for both computer and user Group Policy processing.

2.Site : Any GPOs that have been linked to the site that the computer belongs to are processed next. Processing is in the order that is specified by the administrator, on the Linked Group Policy Objects tab for the site in Group Policy Management Console (GPMC). The GPO with the lowest link order is processed last, and therefore has the highest precedence.

3.Domain: Processing of multiple domain-linked GPOs is in the order specified by the administrator, on the Linked Group Policy Objects tab for the domain in GPMC. The GPO with the lowest link order is processed last, and therefore has the highest precedence.

4.Organizational units : GPOs that are linked to the organizational unit that is highest in the Active Directory hierarchy are processed first, then POs that are linked to its child organizational unit, and so on. Finally, the GPOs that are linked to the organizational unit that contains the user or computer are processed.

At the level of each organizational unit in the Active Directory hierarchy, one, many, or no GPOs can be linked. If several GPOs are linked to an organizational unit, their processing is in the order that is specified by the administrator, on the Linked Group Policy Objects tab for the organizational unit in GPMC.

The GPO with the lowest link order is processed last, and therefore has the highest precedence.

This order means that the local GPO is processed first, and GPOs that are linked to the organizational unit of which the computer or user is a direct member are processed last, which overwrites settings in the earlier GPOs if there are conflicts. (If there are no conflicts, then the earlier and later settings are merely aggregated.)