We show that any compact quaternionic contact (abbr. qc) hypersurfaces in a hyper-Kähler manifold which is not totally umbilical has an induced qc structure, locally qc homothetic to the standard 3-Sasakian sphere. We also show that any nowhere umbilical qc hypersurface in a hyper-Kähler manifold is endowed with an involutive 7-dimensional distribution whose integral leafs are locally qc-conformal to the standard 3-Sasakian sphere. in [2,4], every real analytic qc structure is the conformal infinity of a unique (asymptotically hyperbolic) quaternionic-Kähler metric defined in a neighborhood of the qc structure. Similar to the CR case the question of embedded quaternionic contact hypersurfaces is a natural one, but in contrast to the CR case it imposes a rather strong conditions on the hypersurface. The situation has the flavor of the Kähler versus the hyper-Kähler case. As well known any complex submanifold of a Kähler manifold is a Kähler manifold and a Kähler metric is locally given by a Kähler potential. In contrast, a hyper-complex manifold of a hyper-Kähler manifold must be totally geodesic and (in general) there is no hyper-Kähler potential (the structure is rigid). This suggests that we can expect that there are few quaternionic contact hypersurfaces in a hyper-Kähler manifold. Indeed, we showed in [9] that given a connected qc-hypersurface M in the flat quaternion space H n+1 , then, up to a quternionic affine transformation of H n+1 , M is contained in one of the following three hyperquadrics (the 3-Sasakain sphere, the hyperboloid and the quaternionic Heisenberg group):(1.1) (i) |q 1 | 2 +· · ·+|q n | 2 +|p| 2 = 1, (ii) |q 1 | 2 +· · ·+|q n | 2 −|p| 2 = −1, (iii) |q 1 | 2 +· · ·+|q n | 2 +Re(p) = 0, Date: September 24, 2018. 1991 Mathematics Subject Classification. 58G30, 53C17.