We use conformal supergravity techniques to study four-derivative corrections in four-dimensional gauged supergravity. We show that the four-derivative Lagrangian for the propagating degrees of freedom of the $mathcal{N}=2$ gravity multiplet is determined by two real dimensionless constants. We demonstrate that all solutions of the two-derivative equations of motion in the supergravity theory also solve the four-derivative equations of motion. These results are then applied to explicitly calculate the regularized on-shell action for any asymptotically locally AdS$_4$ solution of the two-derivative equations of motion. The four-derivative terms in the supergravity Lagrangian modify the entropy and other thermodynamic observables for the black hole solutions of the theory. We calculate these corrections explicitly and demonstrate that the quantum statistical relation holds for general stationary black holes in the presence of the four-derivative corrections. Employing an embedding of this supergravity model in M-theory we show how to use supersymmetric localization results in the holographically dual three-dimensional SCFT to determine the unknown coefficients in the four-derivative supergravity action. This in turn leads to new detailed results for the first subleading $N^{frac{1}{2}}$ correction to the large $N$ partition function of a class of three-dimensional SCFTs on compact Euclidean manifolds. In addition, we calculate explicitly the first subleading correction to the Bekenstein-Hawking entropy of asymptotically AdS$_4$ black holes in M-theory. We also discuss how to add matter multiplets to the supergravity theory in the presence of four-derivative terms and to generalize some of these results to six- and higher-derivative supergravity.
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