Using the unique polarization selection rule for the biexcitonic transition we demonstrate conclusively the dominant effects of the biexciton-induced two-photon coherence on polarization-dependent four-wave-mixing in GaAs quantum wells. We also show that the two-photon coherence is the leading contribution to the self-diffracted four-wave-mixing response in the cross-linearly polarized configuration and can explain the anomalous polarization dependence in four-wave-mixing.