We extend the self-consistent Greens functions formalism to take into account three-body interactions. We analyze the perturbative expansion in terms of Feynman diagrams and define effective one- and two-body interactions, which allows for a substantial reduction of the number of diagrams. The procedure can be taken as a generalization of the normal ordering of the Hamiltonian to fully correlated density matrices. We give examples up to third order in perturbation theory. To define nonperturbative approximations, we extend the equation of motion method in the presence of three-body interactions. We propose schemes that can provide nonperturbative resummation of three-body interactions. We also discuss two different extensions of the Koltun sum rule to compute the ground state of a many-body system.