The Bible presents one unified story of redemption, but God’s dealings with humanity also unfold through different stages, covenants, and dispensations throughout history. At the same time, there is a big difference between covenant theology and dispensationalism. Covenant theology generally understands the church as replacing or fulfilling Israel in such a way that the church inherits Israel’s covenant promises, while dispensationalism maintains a distinction between Israel and the church and recognizes that God still has a future purpose for Israel (Romans 9–11). Dispensationalism does not deny that God works through covenants; rather, it recognizes that covenants such as those made with Noah, Abraham, Moses, David, and the promised New Covenant are part of God’s larger unfolding program (Genesis 9:8–17; 12:1–3; Exodus 19–24; 2 Samuel 7:12–16; Jeremiah 31:31–34). It also recognizes different dispensations, most frequently seven: Innocence, Conscience, Human Government, Promise, Law, Grace, and the Millennial Kingdom, in which God gave humanity different responsibilities and administered His purposes in different ways. The New Testament reveals that Christ established the New Covenant and that Jews and Gentiles who believe in Him are united as one body, but Paul makes clear that God’s promises to Israel have not failed and that “the gifts and the calling of God are irrevocable” (Luke 22:20; Ephesians 2:11–22; Romans 11:25–29). What an amazing picture of God’s faithfulness: through different stages and covenants, He has been working throughout human history to accomplish one incredible plan of redemption, ultimately centered on Christ and leading toward His kingdom and final victory.
The Bible presents one unified story of redemption, but it unfolds through different stages in God's dealings with humanity. God has always been the same God, His character has never changed, and salvation has always ultimately been by His grace through faith. Yet the responsibilities, revelations, commands, and ways God administered His purposes have changed throughout history. This is the basic idea behind dispensationalism. Though there are differences in the number and the specific dispensations, most believe in seven different eras or dispensations, including 1) Innocence, 2) Conscience, 3) Human Government, 4) Promise, 5) Law, 6) Grace, and 7) the Millennial Kingdom.
At the same time, the Bible clearly shows that covenants are central to God's dealings with humanity. God made covenants with Noah (Genesis 9:8–17), Abraham (Genesis 12:1–3; 15:18–21; 17:1–14), Israel through Moses (Exodus 19–24), David (2 Samuel 7:8–16), and ultimately promised a New Covenant (Jeremiah 31:31–34). These covenants are not opposed to dispensationalism; rather, they operate within the larger unfolding of God's purposes.
The important distinction is that we should not equate dispensations with covenants. We should also understand the implications of the terminology we use. For example, a dispensation describes an administration or stewardship in God's unfolding program, while a covenant is a specific relationship or promise God establishes with people. The Bible gives us evidence for both concepts, even though neither word functions as a complete theological system within Scripture itself. Further, covenant theology is not the same as believing that God worked through covenants. Covenant theology believes that the church has replaced Israel in God's redemptive plan. This is not biblical.
Jesus was the fulfillment of every Messianic promise in the Old Testament. God's covenants with mankind continually pointed to the Savior who would one day save His people from their sin. There is no way to separate God's plans for the Jews from His purpose for the church, because they are one and the same. This should encourage us as we see how intentional and faithful God has been throughout history, working through different stages and covenants to accomplish His plan of redemption and ultimately bring everything under the rule of Christ.