This is a review paper, whose goal is to significantly improve our understanding of the crucial role of attribute interaction in data mining. The main contributions of this paper are as follows. Firstly, we show that the concept of attribute interaction has a crucial role across different kinds of problem in data mining, such as attribute construction, coping with small disjuncts, induction of first-order logic rules, detection of Simpson’s paradox, and finding several types of interesting rules. Hence, a better understanding of attribute interaction can lead to a better understanding of the relationship between these kinds of problems, which are usually studied separately from each other. Secondly, we draw attention to the fact that most rule induction algorithms are based on a greedy search which does not cope well with the problem of attribute interaction, and point out some alternative kinds of rule discovery methods which tend to cope better with this problem. Thirdly, we discussed several algorithms and methods for discovering interesting knowledge that, implicitly or explicitly, are based on the concept of attribute interaction.