The Pied Piper of Hamelin is a popular German folktale about a mysterious piper who was hired by the town of Hamelin to rid it of rats. The piper agreed to do the job for a fee, but when the town refused to pay him, he used his magical pipe to lure away the town's children. The term 'The Pied Piper of Hamelin' refers to this mysterious figure and is derived from the word 'pied', which means having two or more colors.