In ASDEX Upgrade the compatibility of improved H-modes with an all-W wall has been demonstrated. Under boronized conditions light impurities and the radiated power fraction in the divertor were reduced, requiring N seeding to cool the divertor plasma. The impurity seeding does not only protect the divertor tiles but also considerably improves the performance of improved H-mode discharges by up to 25%. The energy confinement increases to H98-factors up to 1.3 and thereby exceeds the best values in the carbon-dominated AUG at the same density and collisionality. This improvement is due to higher edge temperatures rather than to peaking of the electron density profile. Higher temperatures are reached at the pedestal top leading, via profile stiffness, to an increase in the total plasma pressure. There is no change to in the plasma core. The dilution at the plasma edge by nitrogen seems to play an important role since it allows higher ion temperatures at the same edge ion pressure as in the unseeded case. The dilution of the core plasma remains moderate.