Time dilation is a result of Einstein's Special Theory of Relativity.

According to Special Relativity, as the speed of a moving frame increases relative to an observer, the time that elapses in that frame decreases relative to that observer.

The time elapsed in the moving frame relative to an observer in an inertial frame is given by:

where t is the time interval between two events in the inertial frame; t' is the time interval, relative to an observer in the inertial frame, between the same two events in the moving frame; and $\gamma$ (greek letter gamma) is the Lorentz Factor.

See also Length Contraction

Further reading: http://en.wikipedia.org/wiki/Time_dilation

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