diff --git a/pkg/proxy/ipvs/proxier.go b/pkg/proxy/ipvs/proxier.go
index e57e5901dcf..8e73e9e45b1 100644
--- a/pkg/proxy/ipvs/proxier.go
+++ b/pkg/proxy/ipvs/proxier.go
@@ -1648,6 +1648,14 @@ func (proxier *Proxier) syncProxyRules() {
 // according to proxier.ipsetList information and the ipset match relationship that `ipsetWithIptablesChain` specified.
 // some ipset(kubeClusterIPSet for example) have particular match rules and iptables jump relation should be sync separately.
 func (proxier *Proxier) writeIptablesRules() {
+
+	// Dismiss connects to localhost early in the service chain
+	loAddr := "127.0.0.0/8"
+	if proxier.ipFamily == v1.IPv6Protocol {
+		loAddr = "::1/128"
+	}
+	proxier.natRules.Write("-A", string(kubeServicesChain), "-s", loAddr, "-j", "RETURN")
+
 	// We are creating those slices ones here to avoid memory reallocations
 	// in every loop. Note that reuse the memory, instead of doing:
 	//   slice = <some new slice>
diff --git a/pkg/proxy/ipvs/proxier_test.go b/pkg/proxy/ipvs/proxier_test.go
index 30f87d39432..d8974eb5d40 100644
--- a/pkg/proxy/ipvs/proxier_test.go
+++ b/pkg/proxy/ipvs/proxier_test.go
@@ -670,6 +670,8 @@ func TestNodePortIPv4(t *testing.T) {
 					JumpChain: "ACCEPT", MatchSet: kubeHealthCheckNodePortSet,
 				}},
 				string(kubeServicesChain): {{
+					JumpChain: "RETURN", SourceAddress: "127.0.0.0/8",
+				}, {
 					JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet,
 				}, {
 					JumpChain: string(kubeNodePortChain), MatchSet: "",
@@ -2052,6 +2054,8 @@ func TestLoadBalancer(t *testing.T) {
 	// Check iptables chain and rules
 	epIpt := netlinktest.ExpectedIptablesChain{
 		string(kubeServicesChain): {{
+			JumpChain: "RETURN", SourceAddress: "127.0.0.0/8",
+		}, {
 			JumpChain: string(kubeLoadBalancerChain), MatchSet: kubeLoadBalancerSet,
 		}, {
 			JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet,
@@ -2152,6 +2156,8 @@ func TestOnlyLocalNodePorts(t *testing.T) {
 	// Check iptables chain and rules
 	epIpt := netlinktest.ExpectedIptablesChain{
 		string(kubeServicesChain): {{
+			JumpChain: "RETURN", SourceAddress: "127.0.0.0/8",
+		}, {
 			JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet,
 		}, {
 			JumpChain: string(kubeNodePortChain), MatchSet: "",
@@ -2324,6 +2330,8 @@ func TestLoadBalancerSourceRanges(t *testing.T) {
 	// Check iptables chain and rules
 	epIpt := netlinktest.ExpectedIptablesChain{
 		string(kubeServicesChain): {{
+			JumpChain: "RETURN", SourceAddress: "127.0.0.0/8",
+		}, {
 			JumpChain: string(kubeLoadBalancerChain), MatchSet: kubeLoadBalancerSet,
 		}, {
 			JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet,
@@ -2403,6 +2411,7 @@ func TestAcceptIPVSTraffic(t *testing.T) {
 	// Check iptables chain and rules
 	epIpt := netlinktest.ExpectedIptablesChain{
 		string(kubeServicesChain): {
+			{JumpChain: "RETURN", SourceAddress: "127.0.0.0/8"},
 			{JumpChain: string(kubeLoadBalancerChain), MatchSet: kubeLoadBalancerSet},
 			{JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet},
 			{JumpChain: string(kubeMarkMasqChain), MatchSet: kubeExternalIPSet},
@@ -2501,6 +2510,8 @@ func TestOnlyLocalLoadBalancing(t *testing.T) {
 	// Check iptables chain and rules
 	epIpt := netlinktest.ExpectedIptablesChain{
 		string(kubeServicesChain): {{
+			JumpChain: "RETURN", SourceAddress: "127.0.0.0/8",
+		}, {
 			JumpChain: string(kubeLoadBalancerChain), MatchSet: kubeLoadBalancerSet,
 		}, {
 			JumpChain: string(kubeMarkMasqChain), MatchSet: kubeClusterIPSet,
@@ -6089,3 +6100,44 @@ func TestNoEndpointsMetric(t *testing.T) {
 		}
 	}
 }
+
+func TestDismissLocalhostRuleExist(t *testing.T) {
+	tests := []struct {
+		name     string
+		ipFamily v1.IPFamily
+		src      string
+	}{
+		{
+			name:     "ipv4 rule",
+			ipFamily: v1.IPv4Protocol,
+			src:      "127.0.0.0/8",
+		},
+		{
+			name:     "ipv6 rule",
+			ipFamily: v1.IPv6Protocol,
+			src:      "::1/128",
+		},
+	}
+	for _, test := range tests {
+		t.Run(test.name, func(t *testing.T) {
+			ipt := iptablestest.NewFake()
+			if test.ipFamily == v1.IPv6Protocol {
+				ipt = iptablestest.NewIPv6Fake()
+			}
+			ipvs := ipvstest.NewFake()
+			ipset := ipsettest.NewFake(testIPSetVersion)
+			fp := NewFakeProxier(ipt, ipvs, ipset, nil, nil, test.ipFamily)
+
+			fp.syncProxyRules()
+
+			rules := getRules(ipt, kubeServicesChain)
+			if len(rules) <= 0 {
+				t.Errorf("skip loop back ip in kubeservice chain not exist")
+				return
+			}
+			if !rules[0].Jump.Matches("RETURN") || !rules[0].SourceAddress.Matches(test.src) {
+				t.Errorf("rules not match, expect jump: %s, got: %s; expect source address: %s, got: %s", "RETURN", rules[0].Jump.String(), test.src, rules[0].SourceAddress.String())
+			}
+		})
+	}
+}
diff --git a/pkg/proxy/ipvs/testing/util.go b/pkg/proxy/ipvs/testing/util.go
index 2dbff14d171..c312923ac2b 100644
--- a/pkg/proxy/ipvs/testing/util.go
+++ b/pkg/proxy/ipvs/testing/util.go
@@ -43,8 +43,9 @@ type ExpectedIptablesChain map[string][]ExpectedIptablesRule
 
 // ExpectedIptablesRule is the expected iptables rules with jump chain and match ipset name
 type ExpectedIptablesRule struct {
-	JumpChain string
-	MatchSet  string
+	SourceAddress string
+	JumpChain     string
+	MatchSet      string
 }
 
 // ExpectedIPSet is the expected ipset with set name and entries name