In this paper, three-term recurrence relations for branched continued fractions are determined. Based on the algorithm of partial inverse differences in tensor-product-like manner, the finite branched continued fractions can be applied to rational interpolation over pyramid-typed grids in R 3. By means of the three-term recurrence relations, a characterization theorem is valid. Then an error estimation is worked out. Based on the relationship between the partial inverse differences and partial reciprocal ones, and the partial reciprocal derivatives as well, the BCFs osculatory interpolation with its algorithm is stated which shows it feasibility of partial derivable functions in BCFs expansion at one point.