Pair programming involves two programmers working together at one computer. One programmer acts as the driver who writes code while the other serves as the navigator who reviews the code as it is written. This approach has benefits like producing higher quality code, faster development times, greater knowledge sharing, and improved teamwork. It works because the pair members provide pressure, reviews, and learning opportunities for each other. Effective pair programming requires an accessible workspace, communication between partners, consistent standards, understanding teammates' strengths, and rotating pair assignments. Some disadvantages are that it requires an even number of developers and can be challenging with skills imbalances or disagreements between partners.