Giant impact hypothesis
This is the prevailing theory supported by the scientific community. Like the other planets, the Earth formed from the leftover cloud of dust and gas orbiting the young sun. The early solar system was a violent place, and a number of bodies were created that never made it to full planetary status. According to the giant impact hypothesis, one of these crashed into Earth not long after the young planet was created.
Known as Theia, the Mars-size body collided with Earth, throwing vaporized chunks of the young planet's crust into space. Gravity bound the ejected particles together, creating a moon that is the largest in the solar system in relation to its host planet. This sort of formation would explain why the moon is made up predominantly of lighter elements, making it less dense than Earth — the material that formed it came from the crust, while leaving the planet's rocky core untouched. As the material drew together around what was left of Theia's core, it would have centered near Earth's ecliptic plane, the path the sun travels through the sky, which is where the moon orbits today.