We show that the gapless boundary signatures---namely, chiral/helical hinge modes or localized zero modes---of three-dimensional higher-order topological insulators and superconductors with inversion symmetry can be gapped without symmetry breaking upon the introduction of non-Abelian surface topological order. In each case, the fractionalization pattern that appears on the surface is ``anomalous'' in the sense that it can be made consistent with symmetry only on the surface of a three-dimensional higher-order insulator/superconductor. Our results show that the interacting manifestation of higher-order topology is the appearance of ``anomalous gapped boundaries'' between distinct topological orders whose quasiparticles are related by inversion, possibly in conjunction with other protecting symmetries such as time-reversal symmetry and charge conservation.
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