We devise a protocol in which general nonclassical multipartite correlations produce a physically relevant effect, leading to the creation of bipartite entanglement. In particular, we show that the relative entropy of quantumness, which measures all nonclassical correlations among subsystems of a quantum system, is equivalent to and can be operationally interpreted as the minimum distillable entanglement generated between the system and local ancillae in our protocol. We emphasize the key role of state mixedness in maximizing nonclassicality: Mixed entangled states can be arbitrarily more nonclassical than separable and pure entangled states.