What does being justified by faith mean?

Justification by faith is a cornerstone of Reformed theology that asserts we are made right with God solely through our faith in Jesus Christ, not by our works. Romans 5:1 states that we are justified by faith and thus have peace with God. This means that upon placing our trust in Christ's sacrifice, God declares us righteous as if we had never sinned, fully based on Christ's righteousness. This profound truth ensures that we can approach God confidently, knowing that our acceptance does not depend on our performance but on Christ's finished work.