This lecture covers the determination of principal stresses and maximum shear stresses in a stress element, as well as the construction and application of Mohr's Circle for plane stress analysis. It explains the concept of triaxial stress state and Hooke's Law for different stress conditions, including volume change and unit volume change. The instructor demonstrates how to calculate principal stresses through eigenvalue analysis and solve problems related to stress and strain transformations. Additionally, the lecture discusses the importance of measuring strains to analyze stress distribution in materials.