  We have analyzed the Chandra, BeppoSax, and ROSAT observations of Abell 754
and report evidence of a soft, diffuse X-ray component. The emission is peaked
in the cluster center and is detected out to 8' from the X-ray center. Fitting
a thermal model to the combined BeppoSax and PSPC spectra show excess emission
below 1 keV in the PSPC and above 100 keV in the BeppoSax PDS. The source 26W20
is in the field of view of the PDS. The addition of a powerlaw with the
spectral parameters measured by Silverman et al. (1998) for 26W20 successfully
models the hard component in the PDS. The remaining excess soft emission can be
modeled by either a low temperature, 0.75 - 1.03 keV component, or by a
powerlaw with a steep spectral index, 2.3. Addition of a second thermal
component model provides a much better fit to the data than does the addition
of a non-thermal component. The Chandra temperature map does not show any
region cooler than 6.9 keV within the region where the cool component was
detected. Simulations of the emission from embedded groups were performed and
compared with the Chandra temperature map which show groups are a plausible
source of ~1 keV emission. The cool component is centrally peaked in the
cluster and the gas density and temperature are relatively high arguing against
the WHIM as the source of the X-ray emission. X-ray emission from elliptical
galaxies is not high enough to provide the total cool component luminosity,
7.0x10^43 ergs s^-1. The peak of the cool component is located between the low
frequency radio halos arguing against a non-thermal interpretation for the
emission. We conclude that emission from embedded groups is the most likely
origin of the cool component in Abell 754.
