Abstract. We study reduced fusion systems from the point of view of their essential subgroups, using the classification by Goldschmidt and Fan of amalgams of prime index to analyze certain pairs of such subgroups. Our results are applied here to study reduced fusion systems over 2-groups of order at most 64, and also reduced fusion systems over 2-groups having abelian subgroups of index two. More applications are given in later papers.A saturated fusion system over a finite p-group S is a category whose objects are the subgroups of S, whose morphisms are monomorphisms between subgroups, and which satisfy certain axioms first formulated by Puig [Pg2] and motivated by conjugacy relations among p-subgroups of a given finite group. A saturated fusion system is reduced if it has no proper normal subsystem of p-power index, no proper normal subsystem of index prime to p, and no nontrivial normal p-subgroup. (All three of these concepts are defined by analogy with finite groups.) Reduced fusion systems need not be simple, in that they can have proper nontrivial normal subsystems. They were introduced by us in [AOV] as forming a class of fusion systems which is small enough to be manageable, but still large enough to detect any fusion systems (reduced or not) which are "exotic" (not defined via conjugacy relations in any finite group).When G is a finite group and S ∈ Syl p (G), the version of Alperin's fusion theorem shown by Goldschmidt [Gd1] says that all G-conjugacy relations among subgroups of S are generated by Aut G (S) (automorphisms induced by conjugation in G), together with Aut G (P ) for certain "essential" proper subgroups of S, and restrictions of such automorphisms. There is a version of this result for abstract fusion systems (see Theorem 1.2), which says that a fusion system F is generated by F-automorphisms of F-essential subgroups (Definition 1.1). Our goal in this and our other papers is to study, and to classify in certain cases, reduced fusion systems from the point of view of their essential subgroups and generating automorphisms.This point of view was introduced in [OV], where two of us described how fusion systems over a given 2-group S could be classified by first listing the subgroups of S which potentially could be essential, using Bender's theorem on groups with strongly embedded subgroups. When we try to extend those methods to larger classes of groups, it is useful to search for pairs of essential subgroups via theorems of Goldschmidt and Fan classifying certain types of amalgams.