Neoclassical tearing modes (NTMs) are studied in the ASDEX Upgrade tokamak [O. Gruber, H.-S. Bosch, S. Günter et al., Nucl. Fusion 39, 1321 (1999)]. The onset βN for NTMs scales with the normalized ion gyroradius ρ*, independent of the normalized collisionality ν* for a wide range of ν*. This scaling is in accordance with both polarization current and χ⊥/χ∥ model, if for the latter, the heat flux limit on parallel heat conductivity is taken into account. Analysis of NTM stabilization experiments indicates that the typical seed island size is 1–1.5 cm, again in agreement with both models. Mode coupling to the q=1 surface is a crucial element in determining the impact of the NTM on the discharge performance. Complete stabilization using electron cyclotron current drive (ECCD) has been demonstrated at βN=2.5 and with about 10% of the total heating power. The results are in good qualitative agreement with modeling using the Rutherford equation and in quantitative agreement with a two-dimensional nonlinear cylindrical tearing mode code. A precise positioning of the ECCD microwave beam, so far achieved by feedforward variation of Bt, is required for efficient stabilization. This calls for feedback control of the stabilization scheme. Our plans to implement such a scheme on ASDEX Upgrade are discussed.