Coherence is a statistical measure of how well predictions can be made about wave behavior over time and space, defined by temporal and spatial coherence. The mutual coherence function provides a general framework, while coherence time and area are specific to time and space domains, respectively. Interference occurs between coherent waves because they maintain a consistent phase relationship, unlike incoherent waves that behave randomly. Laser beams exemplify strong temporal coherence, as they are in phase and travel in the same direction. Understanding coherence helps clarify how waves interact and interfere in various contexts.