We report the results of measurements of 27 Al and 55 Mn NMR spectra, the related spin-lattice relaxation rates, and the dc magnetic susceptibility of the stable decagonal quasicrystal Al 69.8 Pd 12.1 Mn 18.2 . The temperature variation of the magnetic susceptibility (T) reveals that the Mn ions carry only an effective magnetic moment of approximately 2 B , and confirms a spin-glass-type freezing of the Mn moments at T f ϭ12 K. The NMR spectra reveal two partially resolved lines for the 27 Al-nuclei, indicating that there are two different sets of environments for the Al-sites. The integrated intensity of the Mn line in the spectra suggests that about half of the Mn ions carry no magnetic moment. Below 50 K, and upon decreasing the temperature, the 27 Al NMR linewidth w and the spin-lattice relaxation rate T 1 Ϫ1 both grow with an increasingly negative slope, as it is often observed and interpreted as a critical ''slowing down'' of magnetic moments in systems approaching a spinglass transition. Various features, such as a broad maximum in T 1 Ϫ1 (T) and a slope change in the w() plot, both around 120 K, suggest a gradual reduction of the number of Mn moments with decreasing temperature below 120 K.