The role of a product owner in agile development involves acting as a bridge between the stakeholders and the development team. They prioritize the product backlog to ensure that the most valuable features are developed first. The product owner is responsible for defining the user stories, ensuring that the requirements match the business needs, and refining the backlog as more information becomes available. They also participate in scrum meetings and provide feedback on iterations, collaborating closely with the team to deliver a successful product.