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In-context learning (ICL) enhances the reasoning abilities of Large Language Models (LLMs) by prepending a few demonstrations. It motivates researchers to introduce more examples to provide additional contextual information for the generation. However, existing methods show a significant limitation due to the problem of excessive growth in context length which causes a large hardware burden. Additionally, shallow-relevant examples selected by out-off-shelf tools hinder LLMs from capturing useful contextual information for generation. In this paper, to approach these limitations, we propose UniICL, a novel Unified ICL framework that unifies demonstration compression, demonstration selection, and final response generation. Furthermore, to avoid repeated compression of the same demonstration and boost inference efficiency, we design a tailored compression strategy that allows UniICL caching compression results into Demonstration Bank(DB). Extensive out-of-domain evaluations prove the advantages of UniICL in both effectiveness and efficiency.