We develop a theory of soliton spiraling in a bulk nonlinear medium and rev
eal a new physical mechanism: Periodic power exchange via induced coherence
, which can lead to stable spiraling and the formation of dynamical two-sol
iton states. Our theory explains earlier observations and provides a number
of predictions which are verified experimentally. Finally, we show theoret
ically and experimentally that soliton spiraling can be controlled by the d
egree of mutual initial coherence. [S0031-9007(98)08048-X].