An important problem in gas and fluid dynamics is to understand the behavior of vacuum states, namely the behavior of the system in the presence of vacuum. In particular, physical vacuum, in which the boundary moves with a nontrivial finite normal acceleration, naturally arises in the study of the motion of gaseous stars or shallow water. Despite its importance, there are only few mathematical results available near vacuum. The main difficulty lies in the fact that the physical systems become degenerate along the vacuum boundary. In this paper, we establish the local-in-time well-posedness of threedimensional compressible Euler equations for polytropic gases with physical vacuum by considering the problem as a free boundary problem.