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If you are at high interstate speeds then it MAY damage the engine and/or the transmission especially if you have a lot of miles on it.

Worst case scenario the rpms could be so high that you could float a lifter and pound a valve on the cylinder, lose a rod, blow the automatic tranny up or burn the syncro out of the manual transmission.

If you have a late model automatic most car computers will not let it down shift until the rpms hit a certain range.

It just depends on the gear ratio. If your just barely into 5th gear and downshift into 3rd then it won't do any harm as the rpm range won't be as high.

Just slow the car down a bit before downshifting and there should be no problems skipping a gear. Truck drivers it do every day, just use common sense and don't "red-line" the tach.

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Q: If you are in 5th gear and you drop it to 3rd gear does it damage anything?
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