Neospora caninum is an apicomplexan parasite which invades many different cell types and tissues. It causes neosporosis, namely stillbirth and abortion in cattle and neuromuscular disease in dogs, and has been found in several other animal species. N. caninum is closely related to Toxoplasma gondii, and controversial opinions exist with respect to its phylogenetical status. Initially, two stages of N. caninum had been identified, namely asexually proliferating tachyzoites and bradyzoites. The sexually produced stage of this parasite, oocysts containing sporozoites, has been found only recently. In order to answer the many open questions regarding its basic biology and its relationship with the host, a number of diagnostic tools have been developed. These techniques are based on the detection of antibodies against parasites in body fluids, the direct visualization of the parasite within tissue samples by immunohistochemistry, or the specific amplification of parasite DNA by PCR. Other studies have been aiming at the identification of specific antigenic components of N. caninum, and the molecular and functional characterization of these antigens with respect to the cell biology of the parasite. Clearly, molecular approaches will also be used increasingly to elucidate the immunological and pathogenetic events during infection, but also to prepare potential new immunotherapeutic tools for future vaccination against N. caninum infection.