Abstract-Network coding compresses multiple traffic flows with the aid low-complexity algebraic operations, hence holds the potential of significantly improving both the power and bandwidth efficiency of wireless networks. In this contribution, the novel concept of Network Coded Modulation (NCM) is proposed for jointly performing network coding and modulation in bi-directional/duplex relaying. Each receiver is colocated with a transmitter and hence has prior knowledge of the message intended for the distant receiver. As in classic coded modulation, the Euclidian distance between the symbols is maximized, hence the Symbol Error Ratio (SER) is minimized. Specifically, we conceive NCM methods for PSK, PAM and QAM based on modulo addition of the normalized phase or amplitude. Furthermore, we propose low complexity decoding algorithms based on the corresponding conditional minimum distance criteria. Our performance analysis and simulations demonstrate that NCM relying on PSK is capable of achieving a SER at both receivers of the NCM scheme as if the relay transmitted exclusively to a single receiver only. By contrast, when our NCM concept is combined with PAM/QAM, an SNR loss (<1.25dB) is imposed at one of the receivers, usually at the one having a lower data rate in a realistic different rate scenario. Finally, we will demonstrate that the proposed NCM is compatible with existing physical layer designs.