Three-body interactions have been found in physics, biology, and sociology. To investigate their effect on dynamical systems, as a first step, we study numerically and theoretically a system of phase oscillators with a three-body interaction. As a result, an infinite number of multistable synchronized states appear above a critical coupling strength, while a stable incoherent state always exists for any coupling strength. Owing to the infinite multistability, the degree of synchrony in an asymptotic state can vary continuously within some range depending on the initial phase pattern.