The interpreter pattern describes a way to define the grammar of a language and an interpreter that uses that representation to interpret sentences in the language. It involves creating a class for each symbol (terminal or non-terminal) in the language's grammar. Sentences can then be represented as abstract syntax trees that are easy to traverse and modify. The interpreter pattern is demonstrated through an example of interpreting a barcode grammar. A context class is used to hold pricing data and interpret terminal expression classes like products to return their price.