Close-binary planetary-nebula nuclei (PNNs) provide direct evidence for occurrence of a common-envelope phase in binary-star evolution. Their descendants are V471 Tauri-type detached binaries, cataclysmic binaries, and possibly Type I supernovae. Thirteen close-binary PNNs are now known from periodic photometric or radial-velocity variations, or from composite optical/UV spectra. At least 10% of PNNs are close binaries, a fraction more than sufficient to account for the formation of all of the cataclysmic variables in the solar neighborhood. The Abell 35-type binary PNNs, a class with three known members, contain rapidly rotating, chromospherically active late-type primary stars along with extremely hot companions detected with the IUE satellite.