Permafrost coastlines are experiencing significant erosion as polar amplification has enhanced the effects of climate change in the Arctic. Warmer temperatures are increasing thermo-denudation and more energetic oceans are increasing thermo-abrasion in unlithified, ice-bonded permafrost coastlines. However, models capable of simultaneously capturing these erosional processes whilst being sensitive to terrestrial variability and responsive to transient environmental drivers did not previously exist. Here we present the Arctic Coastal Erosion (ACE) model developed to couple evolving oceanographic and atmospheric conditions at storm-resolving time steps with a finite element multi-physics terrestrial permafrost model. This permafrost model unites thermal and mechanical governing equations by allowing 3D heat conduction with solid-liquid phase change to drive the ice saturation, which governs how the 3D mechanical stress-strain fields develop. The ACE terrestrial model removes failed elements to simulate both slowly advancing thermo-denudation with permafrost sloughing from the face, and highly episodic thermo-abrasion, with niche formation and rapidly advancing block failure. A 2018 summer field campaign at Drew Point, Alaska with sub-daily observations of thermo-denudation and thermo-abrasion, including knowledge of niche geometry before block failure, enable calibration of the terrestrial model. Detailed compositional and geomechanical characterization of the ice-bonded sediments underlay advances in the material model representation and calibrated erosion criteria. We demonstrate a daily RMSE of 0.16 m for thermo-denudation over the summer and achieve block failure within 2.5 days of the observed. The calibrated ACE model can be used to inform: adaptive actions at the community scale and, through parameterization, inform circum-Arctic geochemical flux volumes.