Understanding the resource consumption in distributed scenarios is one of the main goals of quantum information theory. A prominent example for such a scenario is the task of quantum state merging where two parties aim to merge their parts of a tripartite quantum state. In standard quantum state merging, entanglement is considered as an expensive resource, while local quantum operations can be performed at no additional cost. However, recent developments show that some local operations could be more expensive than others: it is reasonable to distinguish between local incoherent operations and local operations which can create coherence. This idea leads us to the task of incoherent quantum state merging, where one of the parties has free access to local incoherent operations only. In this case the resources of the process are quantified by pairs of entanglement and coherence. Here, we develop tools for studying this process, and apply them to several relevant scenarios. While quantum state merging can lead to a gain of entanglement, our results imply that no merging procedure can gain entanglement and coherence at the same time. We also provide a general lower bound on the entanglement-coherence sum, and show that the bound is tight for all pure states. Our results also lead to an incoherent version of Schumacher compression: in this case the compression rate is equal to the von Neumann entropy of the diagonal elements of the corresponding quantum state.Introduction. While coherence has long been known in classical physics as a fundamental waves property [1], in quantum mechanics coherent superposition is elevated to a universal principle governing all processes. Indeed, the fact that all matter exhibits wave behavior was first understood by de Broglie [2], which became the basis of the now standard formulation of quantum mechanics in Schrödinger's wave equation [3]. The universality of the superposition principle, i.e. the tenet that any two valid states of a system can be superposed to form a new valid state, marks a radical departure from classical physics. It is at the heart of the many counterintuitive features of quantum theory, perhaps most famously in Schrödinger's Gedankenexperiment of the cat [4]. Quantum entanglement can be considered as a particular manifestation of coherence, and both of these nonclassical phenomena have led to extensive debates in the early days of quantum mechanics [5,6].While the study of the resource theory of entanglement has a long tradition [7,8], the resource theory of quantum coherence has been formulated only recently [9,10], although other attempts in this direction have been also presented earlier [11][12][13][14][15][16]. The basis of any resource theory are free states, these are states which can be created at no cost. In entanglement theory, these are all separable states. In coherence theory these are incoherent states [9], i.e., states which are diagonal in a fixed basis |i . The second important ingredient of any resource theory are free operations, i.e., operations...