Based on the pulse-time series feature， this paper presents an algorithm for bypass discrimination and pulse interpolation on tele meter reading（TMR） system. Some defects of the traditional methods for dealing with meter bypass are pointed out. By analyzing the pulse-time series feature of meter bypass， an improved algorithm is put forward. It can discriminate the meter bypass and interpolate the pulse value within the bypass process. The proposed algorithm has been verified on the TMR system in Jiangsu Province Power Company.