What does it mean to be justified by grace?

Justification by grace refers to God's act of declaring a sinner righteous based on faith, rather than on any works or merit of their own. Romans 5:1 teaches that being justified by faith brings peace with God, highlighting that this justification is a result of God's grace, not human effort. Furthermore, Romans 4:4-5 illustrates how if justification were based on works, it would imply God owes us what we deserve, but true grace means receiving what we do not deserve - the righteousness of Christ. This concept is essential for understanding the assurance of salvation and the security it provides, as our standing before God rests entirely on His grace and not our performance.