We propose and study a nonlocal Euler system with relaxation, which tends to a strictly hyperbolic system under the hyperbolic scaling limit. An independent proof of the local existence and uniqueness of this system is presented in any spatial dimension. We further derive a precise critical threshold for this system in one dimensional setting. Our result reveals that such nonlocal system admits global smooth solutions for a large class of initial data. Thus, the nonlocal velocity regularizes the generic finite-time breakdown in the pressureless Euler system.
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