Ray tracing is a physics-based method for simulating photorealistic 3D scenes. Light rays are drawn from the eye through each pixel of the desired image, and the rays' interactions with the scene determine the displayed pixel color.
Ray tracing is a method (both physically-based and non-physically-based) for simulating photorealistic 3D scenes. Light rays are traced from the eye (or camera) through the geometry of the scene and the rays' interactions with the objects determine the final displayed pixel color.
It is capable, among other visual effects, to simulate light scattering, reflection, dispersion and refraction more realistically than other graphics rendering methods.
More information: http://en.wikipedia.org/wiki/Ray_tracing_%28graphics%29