We present the experimental observation of polarization entanglement for th
ree spatially separated photons. Such states of more than two entangled par
ticles, known as Greenberger-Horne-Zeilinger (GHZ) states, play a crucial r
ole in fundamental tests of quantum mechanics versus local realism and in m
any quantum information and quantum computation schemes. Our experimental a
rrangement is such that we start with two pairs of entangled photons and re
gister the photons in a way that any information as to which pair each phot
on belongs to is erased. After detecting a trigger photon, the registered e
vents at the detectors for the remaining three photons exhibit the desired
GHZ correlations. [S0031-9007(98)08348-3].