Euphemism is a common linguistic phenomenon which can be divided into two categories: stated and unstated euphemism. This paper interprets euphemism from the perspective of pragmatics: the violation of Cooperative Principle contributes to the generation of euphemism; euphemism has five pragmatic functions, namely, avoidance of taboo, avoidance of vulgarity, politeness, concealment and self defense; euphemism is constrained by context. The paper also induces translation strategies according to the classification of stated and unstated euphemism.