In the covenant of grace, brought by the second Adam, Jesus Christ, God accepts us as His people by faith in Christ’s atoning work alone. These two covenants clarify that works and grace are two different and opposed ways of seeking to secure salvation and right standing with God. Covenant theology then helps us relate grace and works because our works cannot be the basis of our relationship with God, even though good works will be produced in the lives of true believers.

Some topics are covered frequently enough in Reformed churches that it might be easy to lose track of the basics. One such topic is covenant theology. Let’s look at five things that Christians should know about covenant theology.

1. Covenant Theology Is about Our Relationship with Go

A covenant is a formal relationship. Marriage best exemplifies this kind of relationship (Mal. 2:14). Marriage is the most intimate bond two people can have. This supremely personal and loving partnership is also a legal arrangement. Covenants work in a like manner.

Covenant theology helps us better appreciate how God relates to us. Walking with the Lord would be very difficult if He were not clear about what our relationship with Him is like. If we had to guess about things such as how God feels about us, whether He accepts us, how He accepts us, and the best ways to pursue Him, then we would frequently feel uncertain about our standing with Him.

Covenant theology affirms that God clearly explains what our relationship with Him is supposed to be like. Holy Scripture is God’s written, clear revelation of how we can have a right relationship with Him. Because a covenant is a formal relationship, God gives us certainty about our relationship with Him as He commits to us in that fixed bond.

2. Covenant Theology Helps Us Understand the Relationship between Works and Grace

Ephesians 2:8–9 captures a critical aspect of how Reformation Protestants have understood salvation: “For by grace you have been saved through faith. And this is not your own doing; it is the gift of God, not a result of works, so that no one may boast.” Sometimes, we struggle to explain how this free offer of salvation by grace alone relates to the point in verse 10: “For we are his workmanship, created in Christ Jesus for good works, which God prepared beforehand, that we should walk in them” (Eph. 2:10). How do we hold together the freedom grace brings with our responsibility to live well?

In the traditional Reformed understanding, covenant theology distinguishes between the covenant of works and the covenant of grace. God made the covenant of works with Adam before the fall, and it had the condition of perfect obedience.

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