The Factory Method pattern defines an interface for creating objects but lets subclasses decide which class to instantiate. It provides a way to delegate object instantiation to subclasses. For example, a hotel front desk acts as a factory by creating the appropriate type of room object based on a customer's needs. The pattern involves a Creator class with a factory method that returns a Product interface. Concrete subclasses override the factory method to instantiate the appropriate ConcreteProduct. This allows code to work with any product subclasses without needing to know their concrete types.