Abstract. We report on the status of the search for η-mesic nuclei and the studies of the interaction of the η meson with nucleons. Recently we have completed the analysis of the new WASA-at-COSY data on the production of the η meson with polarized proton beam. New results on the analyzing power for the pp → ppη reaction with more than an order of magnitude improved precision shed a new light on the production mechanism of the η meson in nucleon-nucleon collisions. Also, the latest results of the search for η-mesic nuclei are discussed.