Categorical sequence clustering is vital across various domains; however, the interpretability of cluster assignments presents considerable challenges. Sequences inherently lack explicit features, and existing sequence clustering algorithms heavily rely on complex representations, which complicates the explanation of their outcomes. To address this issue, we propose a method called Interpretable Sequence Clustering Tree (ISCT), which combines sequential patterns with a concise and interpretable tree structure. ISCT leverages k−1 patterns to generate k leaf nodes, corresponding to k clusters, which provides an intuitive explanation on how each cluster is formed. More precisely, ISCT first projects sequences into random subspaces and then utilizes the k-means algorithm to obtain high-quality initial cluster assignments. Subsequently, it constructs a pattern-based decision tree using a boosting strategy in which sequences are re-projected and re-clustered at each node before mining the top-1 discriminative splitting pattern. Experimental results on 14 real-world data sets demonstrate that our proposed method provides an interpretable tree structure while delivering fast and accurate cluster assignments.