Dust particles tend to stick to each other in the dense disk environment, leading to the formation of larger particles up to several centimeters in size. The signatures of the dust processing and coagulation are observed in the infrared spectra of the young disks. Further aggregation can lead to the formation of planetesimals measuring 1 km across or larger, which are the building blocks of planets. Planetesimal formation is another unsolved problem of disk physics, as simple sticking becomes ineffective as dust particles grow larger.