Emotions influence our perception of time. Arousal and valence are considered different dimensions of emotions that might interactively affect the perception of time. In the present study, we aimed to investigate the possible time distortions induced by emotional (happy/angry) high-arousing faces compared to neutral, low-arousing faces. Previous works suggested that emotional stimuli enhance the amplitudes of several posterior components, such as Early Posterior Negativity (EPN) and Late Positive Potential (LPP). These components reflect several stages of emotional processing. To this end, we conducted an event-related potential (ERP) study with a temporal bisection task. We hypothesized that the partial dissociation of these ERP components would shed more light on the possible relations of valence and arousal on emotional facial regulation and their consequential effects on behavioral timing. The behavioral results demonstrated a significant effect for emotional stimuli, as happy faces were overestimated relative to angry faces. Our results also indicated higher temporal sensitivity for angry faces. The analyzed components (EPN and LLP) provided further insights into the qualitative differences between stimuli. Finally, the results were interpreted considering the internal clock model and two-stage processing of emotional stimuli.