A gauge theory is a type of theory in physics. The word gauge means a measurement, a thickness, an in-between distance (as in railroad tracks), or a resulting number of units per certain parameter (a number of loops in an inch of fabric or a number of lead balls in a pound of ammunition). Modern theories describe physical forces in terms of fields, e.g., the electromagnetic field, the gravitational field, and fields that describe forces between the elementary particles. A general feature of these field theories is that the fundamental fields cannot be directly measured; however, some associated quantities can be measured, such as charges, energies, and velocities. For example, say you cannot measure the diameter of a lead ball, but you can determine how many lead balls, which are equal in every way, are required to make a pound. Using the number of balls, the density of lead, and the formula for calculating the volume of a sphere from its diameter, one could indirectly determine the diameter of a single lead ball. In field theories, different configurations of the unobservable fields can result in identical observable quantities. A transformation from one such field configuration to another is called a gauge transformation; the lack of change in the measurable quantities, despite the field being transformed, is a property called gauge invariance. For example, if you could measure the color of lead balls and discover that when you change the color, you still fit the same number of balls in a pound, the property of "color" would show gauge invariance. Since any kind of invariance under a field transformation is considered a symmetry, gauge invariance is sometimes called gauge symmetry. Generally, any theory that has the property of gauge invariance is considered a gauge theory.

For example, in electromagnetism the electric field E and the magnetic field B are observable, while the potentials V ("voltage") and A (the vector potential) are not. Under a gauge transformation in which a constant is added to V, no observable change occurs in E or B.

With the advent of quantum mechanics in the 1920s, and with successive advances in quantum field theory, the importance of gauge transformations has steadily grown. Gauge theories constrain the laws of physics, because all the changes induced by a gauge transformation have to cancel each other out when written in terms of observable quantities. Over the course of the 20th century, physicists gradually realized that all forces (fundamental interactions) arise from the constraints imposed by local gauge symmetries, in which case the transformations vary from point to point in space and time. Perturbative quantum field theory (usually employed for scattering theory) describes forces in terms of force-mediating particles called gauge bosons. The nature of these particles is determined by the nature of the gauge transformations. The culmination of these efforts is the Standard Model, a quantum field theory that accurately predicts all of the fundamental interactions except gravity.