Theistic evolution is the theory that God used evolution (Theory of Evolution) to create the world. There are two camps of theistic evolution. Some believe that God set everything in motion, such as creating the building blocks of life and creating the natural laws, and then He stepped aside to let nature takes its course. Others believe that God had his hand in the step-by-step changes of organism progressions as theorized by Charles Darwin. For example, when dinosaurs supposedly evolved into birds, God stepped in and performed a miracle to allow for the necessary anatomical changes to take place.
This theory is an accommodation to help the Bible make sense in the light of secular science, but in reality, it is adding to the Bible, and this is forbidden. Evolution and Creation are completely incompatible. For more information, visit the following link: http://www.gotquestions.org/theistic-evolution.html