This document summarizes Peterson's algorithm for solving the critical section problem with two processes. Peterson's algorithm uses shared variables - an integer "turn" that indicates whose turn it is to enter the critical section, and a boolean flag array to indicate if a process is ready. Each process sets its flag to true, sets "turn" to the other process, and enters the critical section only if the other's flag is false or it owns the turn variable. This ensures mutual exclusion and progress while bounding waiting times.