This thesis studies the manipulation of entanglement in three-qubit quantum systems. I consider the operational setting in which the qubits are distributed to three spatially separated parties. The parties act locally on their quantum systems and share classical communication with one another, a scenario commonly called local operations and classical communication (LOCC). In the LOCC setting, there are two different classes of entanglement in multipartite systems, called the GHZ and W classes, which are inequivalent in the sense that states from one class cannot be transformed into the other without the consumption of additional entanglement. In this thesis, I first show that the LOCC conversion of certain GHZ and W-class states becomes possible by using only one additional ebit (“entangled bit”) of shared entanglement. In many cases, this can be proven as the minimal amount of needed entanglement. I then consider the problem of one-way communication transformations from general three-qubit states into two-qubit maximally entangled states, known as EPR states. An optimal protocol in terms of success probability is provided for W-class states. The success probability of this protocol coincides with the optimal success probability if two of the parties are allowed to act jointly within the same laboratory. In other words, forcing the locality constraint on all three parties does not weaken their capabilities for obtaining bipartite entanglement when starting from a W-class state. I also present that this property holds for certain types of GHZ-class states as well.