Spatial coherence refers to how spherical the wavefront is. Does EVERY portion of the wavefront appear to have EXACTLY the same center of curvature?
Temporal coherence involves how long a period in time does the source maintain a sinusoidal field with no phase modulation. A good example of the need for high temporal coherence is in coherent, or heterodyne, detection. In these systems, energy reflected off the target is mixed with energy from the original laser to create a fringe pattern. If the photons have not maintained a single frequency for the time needed to hit the target and return, the fringe pattern will not have sufficient quality, and the advantages of heterodyne detection go away. Frequently such systems are used for Doppler velocity measurements of the target. The frequency shift from the target-reflected energy is a function of the target velocity. However, if the frequency of the laser is shifting its frequency during the time of flight, this creates a broadening or an error in the frequency of the returned beam that limits how accurately you can measure the Doppler velocity. (From: Nelson Wallace (nelson.wallace@trw