SUMMARYIn this paper, an immersed boundary method for simulating inviscid compressible flows governed by Euler equations is presented. All the mesh points are classified as interior computed points, immersed boundary points (interior points closest to the solid boundary), and exterior points that are blanked out of computation. The flow variables at an immersed boundary point are determined via the approximate form of solution in the direction normal to the wall boundary. The normal velocity is evaluated by applying the no‐penetration boundary condition, and therefore, the influence of solid wall in the inviscid flow is taken into account. The pressure is computed with the local simplified momentum equation, and the density and the tangential velocity are evaluated by using the constant‐entropy relation and the constant‐total‐enthalpy relation, respectively. With a local coordinate system, the present method has been extended easily to the three‐dimensional case. The present work is the first endeavor to extend the idea of hybrid Cartesian/immersed boundary approach to compressible inviscid flows. The tedious task of handling multi‐valued points can be eliminated, and the overshoot resulting from the extrapolation for the evaluation of flow variables at exterior points can also be avoided. In order to validate the present method, inviscid compressible flows over fixed and moving bodies have been simulated. All the obtained numerical results show good agreement with available data in the literature. Copyright © 2014 John Wiley & Sons, Ltd.