Realistic molecular simulations agree with previously published surface force experiments that n-dodecane confined between mica surfaces displays shear-thinning starting at shear rate orders of magnitude less than in the bulk fluid. We probe the origin of this behavior by studying rotational and diffusional relaxations in the simulated fluid and find a freezing-out of the rotational degrees of freedom and a power-law diffusional relaxation, resulting in over seven orders of magnitude increase in the relaxation time. (C) 2003 American Institute of Physics.