What does 'peace on earth' mean in the context of Jesus' birth?

The phrase 'peace on earth' as declared by the heavenly host emphasizes that Jesus, as the 'Prince of Peace,' reconciles us to God. While the world still experiences turmoil and conflict, Jesus' birth heralded the opportunity for individuals to have peace with God through His sacrificial work. Ephesians 2:14 elaborates that Christ Himself is our peace, having broken down the barriers of hostility between different groups, namely Jews and Gentiles, to create one new man in Himself. Thus, true peace originates from a relationship with Jesus, who has made peace with God through His death and resurrection.