Besides their electrical properties the optical parameters of LEDs also depend on junction temperature. For this reason thermal characterization and thermal management play important role in case of power LEDs, necessitating both physical measurements and simulation tools. The focus of this paper is a combined electrical, thermal and optical characterization of power LED assemblies. In terms of simulation a method for board-level electrothermal simulation is presented, for measurements a combined thermal and radiometric characterization system of power LEDs and LED assemblies is discussed.