Euler's criterion states that a^((p−1)/2) ≡ (a/p) (mod p) for odd prime p and integer a. This provides an efficient computational method to evaluate the Legendre symbol and connects Fermat's Little Theorem to quadratic character theory.
Your prerequisites give you two key tools. The Legendre symbol (a/p) tells you whether a is a quadratic residue mod p: it equals 1 if a ≡ b² (mod p) for some b, −1 if no such b exists, and 0 if p divides a. Fermat's Little Theorem says a^(p−1) ≡ 1 (mod p) whenever gcd(a, p) = 1. Euler's criterion connects these two results through a single computation.
The key observation is that a^((p−1)/2) is a square root of a^(p−1) ≡ 1 (mod p). The only square roots of 1 modulo a prime are 1 and −1 (since x²≡1 means p | (x−1)(x+1), forcing x≡1 or x≡−1). So a^((p−1)/2) must be either 1 or −1 mod p. The criterion asserts the value matches the Legendre symbol exactly: +1 when a is a quadratic residue, −1 when it is a non-residue.
To see why the residue case works: if a ≡ b² (mod p), then a^((p−1)/2) ≡ b^(p−1) ≡ 1 (mod p) by Fermat's Little Theorem. For non-residues, the argument uses the fact that the multiplicative group mod p is cyclic: if g is a primitive root, then non-residues are odd powers of g. An odd power raised to (p−1)/2 gives g^(odd·(p−1)/2), which is an odd multiple of (p−1)/2, necessarily ≡ −1 (mod p).
A concrete example makes this tangible. Take p = 7. Is 2 a quadratic residue mod 7? Check: 1²=1, 2²=4, 3²=2, 4²=2, 5²=4, 6²=1 — yes, 2≡3² (mod 7), so (2/7)=1. Euler's criterion confirms: 2^3 = 8 ≡ 1 (mod 7). Now try a = 3: 3^3 = 27 ≡ 6 ≡ −1 (mod 7), so (3/7) = −1 and 3 is a non-residue. The computational payoff is significant: evaluating (a/p) via a^((p−1)/2) mod p takes O(log p) multiplications using fast exponentiation, far more efficient than checking all squares manually.