This report describes Processor Coupling, a mechanism for controlling multiple ALUs on a single integrated circuit to exploit both instruction-level and inter-thread parallelism. A compiler statically schedules individual threads to discover available intra-thread instruction-level parallelism. The runtime scheduling mechanism interleaves threads, exploiting inter-thread parallelism to maintain high ALU utilization. ALUs are assigned to threads on a cycle byscycle basis, and several threads can be active concurrently. Simulation results show that Processor Coupling performs well both on single threaded and multi-threaded applications. The experiments address the effects of memory latencies, function unit latencies, and communication bandwidth between function units.