This lecture covers the fundamental concepts of thermodynamic systems and the first principle of thermodynamics. It begins with an introduction to the first principle, emphasizing the conservation of energy in isolated systems. The instructor explains the different types of systems, including open and closed systems, and the various energy currents involved, such as heat transfer, material transfer, and work. The lecture further delves into extensive state variables and their relationships, including momentum and angular momentum. The discussion extends to energy differentials and the internal energy balance, highlighting the importance of work, heat, and material energy contributions. The instructor also addresses the derivation of energy equations and the application of these principles to practical scenarios, such as oscillators and gas systems. The lecture concludes with a focus on the implications of these principles in real-world applications, reinforcing the connection between theoretical concepts and practical thermodynamic systems.