This lecture introduces the concepts of microstates and macrostates in thermodynamics, focusing on entropy as a state function. The instructor explains how entropy is defined through reversible transformations and its implications for isolated systems. The second principle of thermodynamics is discussed, emphasizing that entropy must increase in irreversible processes. The lecture also covers the relationship between microstates and macrostates, illustrating how multiple microstates can correspond to a single macrostate. Examples involving gas expansion and coin flips are used to demonstrate these concepts. The instructor highlights the significance of probability in determining the most likely states of a system, particularly in large ensembles. The lecture concludes with a discussion on the implications of entropy for the universe, including the concept of thermal death, where no work can be extracted due to uniform temperature. Overall, the lecture provides a comprehensive overview of the foundational principles of thermodynamics and their connection to entropy.