Use DirectoryReader directoryEntry.createReader() , readEntries() for folders or , FileEntry file() for single or multiple file drops.
html
<div id="dropzone" 
     ondragenter="event.stopPropagation(); event.preventDefault();" 
     ondragover="event.stopPropagation(); event.preventDefault();" 
     ondrop="event.stopPropagation(); event.preventDefault(); handleDrop(event);">
    Drop files
</div>
javascript
function handleFiles(file) {
  console.log(file);
  // do stuff with `File` having `type` including `image`
  if (/image/.test(file.type)) {
    var img = new Image;
    img.onload = function() {
      var figure = document.createElement("figure");
      var figcaption = document.createElement("figcaption");
      figcaption.innerHTML = file.name;
      figure.appendChild(figcaption);
      figure.appendChild(this);
      document.body.appendChild(figure);
      URL.revokeObjectURL(url);
    }
    var url = URL.createObjectURL(file);
    img.src = url;
  } else {
    console.log(file.type)
  }
}
function handleDrop(event) {
  var dt = event.dataTransfer;
  var files = dt.files;
  var length = event.dataTransfer.items.length;
  for (var i = 0; i < length; i++) {
    var entry = dt.items[i].webkitGetAsEntry();
    if (entry.isFile) {
      // do whatever you want
      console.log("isFile", entry.isFile);
      entry.file(handleFiles);
    } else if (entry.isDirectory) {
      // do whatever you want
      console.log("isDirectory", entry.isDirectory);
      var reader = entry.createReader();
      reader.readEntries(function(entries) {
        entries.forEach(function(dir, key) {
          dir.file(handleFiles);
        })
      })
    }
  }
}
plnkr http://plnkr.co/edit/eGAnbA?p=preview