I will introduce the asymptotic safety scenario as a potential candidate for a model of quantum gravity. I will review the basic idea of the approach and highlight recent progress that provides intriguing hints that quantum gravity might be asymptotically safe. I will then focus on the interactions of quantum gravity with matter, and explain why matter matters in quantum gravity. Finally, I will discuss quantum-gravity effects on matter and show how these can be used to devise observational consistency tests for this model of quantum gravity.