Here are several differences between dispensationalism and covenant theology in a 2 minute or so read.
Dispensational theology centers around the idea that God has dealt with mankind differently throughout history based on that time period’s “dispensation” of revelation (i.e. pre-Fall, conscience, promise, Law, grace, etc.). While there are different thoughts on how many dispensations there are, most adherents believe in seven. Dispensationalists also hold to a very literal interpretation of Scripture. This literal approach is the reason most dispensationalists believe in a clear distinction between Israel and the Church—God’s specific promises to Israel in the OT were for the Jews, and some have yet to be fulfilled.
Covenant theology believes that God has worked in covenants rather than dispensations. Most covenant theologians believe in two distinct covenants: a covenant of works (pre-Fall) and a covenant of grace (post-Fall). The idea is that in the Garden of Eden, Adam’s eternal life was dependent upon his perfect obedience to God. After the Fall, mankind’s eternal life was only obtainable by grace through faith. It is important to note that many covenant theologians believe that God did not abolish the covenant of works, rather Christ came and fulfilled it to make the covenant of grace possible.
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