Consider two frames S and S′. Let S′ be moving with a velocity v with respect to S in the positive X-direction. Suppose a clock situated in the frame S′ at a position gives out signals at an interval t0.
If this interval is observed by an observer in frame S, then the interval t recorded by him is,
t=t0√1−v2c2 i.e. t>t0
To a stationary observer in S, time interval appears to be lengthened by a factor 1√1−v2c2. In other words, a moving clock appears to be slowed down to a stationary observer. This is known as time dilation.
Example: The clock in the moving space-ships will appear to go slower than the clocks on the earth.