The new feature suggests friends for you, lets you browse Twitter users through interests, or find new Twitter buddies through other services such as Gmail, Yahoo, LinkedIn, Hotmail and Messenger.
It also shows the accounts you've recently followed and viewed, with the ability to quickly browse accounts that are similar to those you've followed.
One of the main problems Twitter users are facing is a meaningful way to find new people to follow. There's a large number of third-party tools and services out there that let you discover new friends, but until now, Twitter itself wasn't really helpful with this regard. Now, it has finally consolidated all of its friend-finding features under one tab, which will definitely be helpful, especially to new users.
Interestingly enough, it seems that Twitter is currently testing several slightly different versions of the feature. For example, on my account the new tab is called "Find People" instead of just "People." See the difference in the screenshots below.
