What does it mean to be saved by grace according to Reformed theology?

In Reformed theology, the concept of being saved by grace emphasizes that salvation is wholly the work of God. This is firmly grounded in Ephesians 2:8-9, which teaches that by grace we have been saved through faith, and this is not of ourselves; it is a gift from God, not by works, so that no one can boast. This understanding reflects the sovereignty of God in choosing and saving His people, which is central to the doctrines of grace (TULIP). The effect of this grace transforms believers' lives, leading them to respond in faith and good works, not as a means to earn salvation, but as a manifestation of gratitude for the grace received. Thus, salvation is viewed as a definitive act of God's mercy towards undeserving sinners.