Quantum coherence and quantum entanglement represent two fundamental features of non-classical systems that can each be characterized within an operational resource theory. In this paper, we unify the resource theories of entanglement and coherence by studying their combined behavior in the operational setting of local incoherent operations and classical communication (LIOCC). Specifically we analyze the coherence and entanglement trade-offs in the tasks of state formation and resource distillation. For pure states we identify the minimum coherence-entanglement resources needed to generate a given state, and we introduce a new LIOCC monotone that completely characterizes a state's optimal rate of bipartite coherence distillation. This result allows us to precisely quantify the difference in operational powers between global incoherent operations, LIOCC, and local incoherent operations without classical communication. Finally, a bipartite mixed state is shown to have distillable entanglement if and only if entanglement can be distilled by LIOCC, and we strengthen the wellknown Horodecki criterion for distillability.The ability for quantum systems to exist in "superposition states" reveals the wave-like nature of matter and represents a strong departure from classical physics. Systems in such superposition states are often said to possess quantum coherence. There has currently been much interest in constructing a resource theory of quantum coherence [1][2][3][4][5][6][7][8][9][10][11], in part because of recent experimental and numerical findings that suggest quantum coherence alone can enhance or impact physical dynamics in biology [12][13][14][15], transport theory [2,16,17], and thermodynamics [18,19].In a standard resource-theoretic treatment of quantum coherence, the free (or "incoherent") states are those that are diagonal in some fixed reference (or "incoherent") basis Different classes of allowed (or "incoherent") operations have been proposed in the literature [1,3,[9][10][11] (see also [20,21] for comparative studies of these approaches), however an essential requirement is that the incoherent operations act invariantly on the set of diagonal density matrices. Incoherent operations can then be seen as one of the most basic generalizations of classical operations (i.e. stochastic maps) since their action on diagonal states can always be simulated by classical processing. Note also that most experimental setups will have a natural basis to work in, and arbitrary unitary time evolutions might be physically difficult to implement. In these settings, there are practical advantages to identifying "diagonal preserving" operations as being "free" relative to coherentgenerating ones.One does not need to look far to find an important connection between incoherent operations and quantum entanglement, the latter being one of the most important resources in quantum information processing [22]. Consider the task of entanglement generation. This procedure is usually modeled by bringing together two or more quantum syst...