At the center of covenantal hermeneutics is the distinction between Law and Gospel. If a dispensationalist cannot explain his hermeneutics without using the phrase “literal, historical, and grammatical,” a covenentalist cannot explain his hermeneutics without describing the Law/Gospel distinction.
These two hermeneutical grids are not mutually exclusive. Obviously, both are largely true. This post is not going to pit them against each other, as much as it will explain what is meant by the Law/Gospel hermeneutic. Understanding this approach to scripture is extremely beneficial, because at its core is a constant reminder about the power of the gospel. When the Law/Gospel distinction is appreciated, it is a powerful aide to sanctification.