We construct superconformal gauged sigma models with extended rigid supersymmetry in three dimensions. Those with N>4 have necessarily flat targets, but the models with N leq 4 admit non-flat targets, which are cones with appropriate Sasakian base ma
nifolds. Superconformal symmetry also requires that the three dimensional spacetimes admit conformal Killing spinors which we examine in detail. We present explicit results for the gauged superconformal theories for N=1,2. In particular, we gauge a suitable subgroup of the isometry group of the cone in a superconformal way. We finally show how these sigma models can be obtained from Poincare supergravity. This connection is shown to necessarily involve a subset of the auxiliary fields of supergravity for N geq 2.
