Euler's theorem states that for any plane graph, the number of vertices (v) minus the number of edges (e) plus the number of faces (f) equals 2. The document proves this theorem by considering a minimal tree (T) within the graph and its dual tree (D), showing that the number of edges of T and D sum to the total edges (e) of the original graph. Some applications of the theorem are that any plane graph contains an edge of degree 5 or higher and any finite set of points not all on a line contains a line with exactly two points.