What is the meaning of 'peace on earth' in relation to Jesus?

When the angels proclaimed 'peace on earth' at Jesus' birth (Luke 2:14), they were referring to the peace that comes from reconciliation with God, rather than universal peace for all humanity. For those who are outside of Christ, there is no peace as God remains at odds with them due to sin (Isaiah 48:22). True peace is found only in Christ, as Colossians 1:20 states that He made peace through the blood of His cross. This peace is a reality for believers, who are united with Christ and stand justified before God, thereby experiencing true spiritual tranquility.