Despite decades of extensive animal movement research, we still lack an integrated, process-based understanding behind the movement decisions that individuals make, which ultimately lead to the emergence of home-ranges. Here, we advance toward a more holistic understanding of HR formation, by developing a theoretical model integrating two key processes that have been separately proposed to play important roles in HR formation in territorial animals: (i) optimising resource acquisition by referencing a cognitive memory (i.e., resource memory); and (ii) minimising resource competition through defensive cues (i.e., territoriality). We extend a two-state memory-based model for non-territorial animals to include multiple individuals that interact through scent-mediated conspecific avoidance behaviour. We investigated how the interplay of memory and territoriality influenced: (1) the emergence of individual home-ranges; (2) the relationship between home-range size, density and resource availability; and (3) the response of animal home ranges to perturbations of the conspecific environment (i.e., removing individuals). We showed that integrating both resource memory and territoriality gave rise to spatially distinct and dynamic HRs that follow a negative log-linear relationship with respect to resource distribution (Pearson's r = -0.73, p < 0.01), congruent with empirical evidence. On its own, neither process resulted in a similar response.