Autonomous driving has the potential to disruptively change the automotive industry as we know it today. For this, fail-operational behavior is essential in the sense, plan, and act stages of the automation chain in order to handle safety-critical situations. The European ECSEL research project PRYSTINE (60 partners, 51 Mio€ budget) realizes Fail-operational Urban Surround perceptION (FUSION) based on robust Radar and LiDAR sensor fusion and control functions in order to enable safe automated driving in urban and rural environments. This talk will showcases some of the key research results achieved so far in the fields of fail-operational sensing, control, and AI controlled vehicle demonstrators beyond SAE Level 3.