The use of amateur drones (ADrs) is expected to significantly increase over the upcoming years. However, regulations do not allow such drones to fly over all areas, in addition to typical altitude limitations. As a result, there is an urgent need for ADrs surveillance solutions. These solutions should include means of accurate detection, classification, and localization of the unwanted drones in a no-fly zone. In this paper, we give an overview of promising techniques for modulation classification and signal strength based localization of ADrs by using surveillance drones (SDrs). By introducing a generic altitude dependent propagation model, we show how detection and localization performance depend on the altitude of SDrs. Particularly, our simulation results show a 25 dB reduction in the minimum detectable power or 10 times coverage enhancement of an SDr by flying at the optimum altitude. Moreover, for a target no-fly zone, the location estimation error of an ADr can be remarkably reduced by optimizing the positions of the SDrs. Finally, we conclude the paper with a general discussion about the future work and possible challenges of the aerial surveillance systems.