The eutectoid point is a specific composition and temperature in a phase diagram where a solid solution transforms into two distinct solid phases simultaneously. This transformation occurs at a particular temperature and composition, resulting in a microstructure that is more stable than the original solid solution. In metallurgy, the eutectoid point is crucial for understanding the behavior of alloys, such as steel. For example, in the iron-carbon system, the eutectoid point occurs at approximately 0.76% carbon and 727°C, leading to the formation of pearlite from austenite.