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

The phrase 'peace on earth' as stated in Luke 2:14 signifies the divine peace granted to God's chosen people through the birth of Jesus Christ. This peace is not a general peace among all humanity, but rather a reconciliation with God for His elect. Jesus Himself said in John 14:27, 'Peace I leave with you, my peace I give unto you,' indicating a specific peace that comes from Him. This peace is rooted in Christ's sacrificial atonement and is central to the message of the gospel, assuring believers of their standing before a holy God.