Understanding the Differences: Dispensationalism, Covenant Theology, and the Progressive Middle

There are few topics in theology that spark more confusion—or curiosity—than how we understand the unfolding storyline of Scripture. For centuries, faithful believers have wrestled with how to rightly interpret the relationship between the Old and New Testaments, Israel and the Church, law and grace, promise and fulfillment. Three major theological systems have risen to the surface in this discussion: Dispensationalism, Covenant Theology, and what some have called the Progressive Middle, which includes approaches like Progressive Dispensationalism and Progressive Covenantalism.

Each system seeks to answer the same core questions:

• How does God relate to His people across time?

• What is the relationship between Israel and the Church?

• How should we interpret the promises of the Old Testament in light of Christ?

Let’s walk through each view—starting with what they believe, why they believe it, and how they interpret Scripture.

1. Dispensationalism: God’s Distinct Plans for Israel and the Church

Overview: Dispensationalism is a system of biblical interpretation that sees God working in different "dispensations" or eras throughout redemptive history. In each era, God reveals His will in a unique way and holds humanity accountable based on that revelation. The key distinctives are the separation between Israel and the Church, a literal interpretation of prophecy, and a future for national Israel in God’s redemptive plan.

Key Beliefs:

• Israel and the Church are distinct. Israel is God’s chosen earthly people. The Church is a spiritual body made up of both Jews and Gentiles, but it does not replace Israel.

• God works in dispensations. Most systems recognize 7 dispensations (Innocence, Conscience, Human Government, Promise, Law, Grace, and Kingdom), each with unique responsibilities and revelations.

• A literal hermeneutic. Prophecies, especially those regarding Israel and the kingdom, should be interpreted literally unless there’s a clear reason not to.

• A future for Israel. God’s promises to Abraham and David—including a land, a nation, and a kingdom—are not spiritualized away. They will be fulfilled in a future, earthly millennial kingdom.

Scriptural Basis: Dispensationalists lean heavily on passages like Genesis 12:1–3 (Abrahamic covenant), 2 Samuel 7 (Davidic covenant), and Romans 11, where Paul says, “...the gifts and the calling of God are irrevocable” (v.29). They argue that the promises made to national Israel have not yet been fulfilled in full and therefore cannot be transferred to the Church.

Why They Believe This: Dispensationalism developed as a response to theological systems that seemed to spiritualize Israel’s role out of existence. Adherents believe that God’s character is tied to His faithfulness in keeping literal promises. If God promised land to Israel, they believe He must literally give them that land, or else His integrity is called into question.

Where It Leads: Dispensationalists tend to have a strong emphasis on end-times prophecy (eschatology), including a pre-tribulational rapture of the Church and a literal 1,000-year reign of Christ on earth with Israel as the centerpiece of that kingdom.

2. Covenant Theology: One Unified People of God

Overview: Covenant Theology takes a different approach, viewing the Bible as the story of God’s covenantal relationship with His people, unfolding through a few central covenants: the Covenant of Redemption, the Covenant of Works, and the Covenant of Grace. It emphasizes continuity, especially between Israel and the Church, and sees the Church as the true Israel—God’s unified people across time.

Key Beliefs:

• One people of God. Old Testament Israel and the New Testament Church are not two distinct peoples but one covenant people, saved by grace through faith.

• Three overarching covenants.

  • Covenant of Redemption (within the Trinity before time began).

  • Covenant of Works (with Adam in the Garden).

  • Covenant of Grace (God’s promise to save through Christ).

• Typological fulfillment. Many Old Testament institutions—land, temple, sacrifices—are types that point to Christ and are fulfilled spiritually in Him and in the Church.

• Christ is the true Israel. He fulfills the calling and identity of Israel, and those who are in Him share in those promises.

Scriptural Basis: Covenant theologians will highlight passages like Galatians 3:29: “If you are Christ’s, then you are Abraham’s offspring, heirs according to promise.” Ephesians 2:14–16 also plays a key role, describing how Christ has made Jew and Gentile “one new man” by breaking down the dividing wall of hostility.

Why They Believe This: Covenant Theology is rooted in a desire to emphasize God's unchanging redemptive plan and the centrality of Christ. It seeks to show how the entire Bible points to Jesus as the fulfillment of all God’s promises. They argue that God’s promises to Israel were always intended to be fulfilled in and through the Messiah, not through a geo-political nation.

Where It Leads: This system tends to emphasize a more "already" aspect of the kingdom—Christ is reigning now, and we are spiritually part of His kingdom. The Church is not a parenthesis in God’s plan, but the pinnacle of it.

3. The Progressive Middle: Bridging the Divide

Overview: In recent years, a third category has emerged—sometimes called Progressive Dispensationalism and Progressive Covenantalism. While they are not identical, both attempt to avoid the extremes of classic Dispensationalism and Covenant Theology by emphasizing both continuity and discontinuity in God’s plan.

Key Beliefs of the Progressive Middle:

• The Bible unfolds progressively. God's revelation builds over time, and later texts help interpret earlier ones.

• Christ fulfills the covenants. But fulfillment does not mean complete replacement.

• The Church is not a replacement of Israel. But neither is Israel entirely separate.

• Some promises are already fulfilled in Christ, others await future consummation.

Let’s look briefly at the two branches:

A. Progressive Dispensationalism

• Maintains a future for national Israel, but recognizes that Christ is already seated on David’s throne in heaven (Acts 2:29–36).

• Sees more overlap between Israel and the Church than classic Dispensationalism.

• Emphasizes the "already/not yet" nature of the kingdom: it is inaugurated but not yet consummated.

B. Progressive Covenantalism

• Similar to Covenant Theology in seeing a unified plan of redemption, but does not adopt the traditional three-covenant structure.

• Sees Christ as the fulfillment of all previous covenants (Abrahamic, Mosaic, Davidic), and the Church as the new covenant people made up of Jews and Gentiles.

• Holds that Israel’s role was typological and fulfilled in Christ, but without denying the importance of the Old Testament promises.

Scriptural Basis: Passages like Hebrews 1:1–2 (“...in these last days he has spoken to us by his Son”) and Luke 24:27 (“...he interpreted to them...in all the Scriptures the things concerning himself”) highlight the Christ-centered interpretive lens. Romans 9–11 is crucial here too—acknowledging both continuity and mystery in God’s dealings with Israel and the Gentiles.

Why They Believe This: This middle ground seeks to read the Bible as one unified story while still respecting the distinctions God makes along the way. The aim is to let the New Testament shape our understanding of the Old without erasing it. Progressive theologians often emphasize the “now and not yet” tension in the kingdom and believe we see fulfillment already happening through Christ, but not completely realized until His return.

Where It Leads: Those in the progressive middle often try to hold in tension what others feel must be separated. They see legitimate diversity in how God works across time, but also clear unity in His redemptive plan. Their goal isn’t to flatten the story or divide it into eras, but to follow the arc of Scripture from promise to fulfillment—centered on Jesus.

So, Who’s Right?

That’s not our goal today. The purpose here is not to declare a winner but to help you understand where each perspective is coming from and why.

Each of these systems seeks to honor Scripture. Each is filled with sincere, Bible-loving Christians trying to make sense of a very big and very beautiful story. And each offers a unique lens that helps us see more clearly how God has moved through history to redeem a people for Himself.

So whether you lean Dispensational, Covenant, or somewhere in between, let’s not forget this: The hero of the story is still Jesus. The climax of the story is still the cross. And the goal of the story is still the glory of God through redeemed people.

Final Thought

If you’re feeling like this is a lot to digest—good. These views weren’t formed overnight, and they weren’t meant to be bumper-sticker theology. They require slow reading, thoughtful study, and a whole lot of humility.

So keep learning. Keep digging. And above all, keep your eyes on Christ—the one in whom all of God’s promises are “Yes and Amen” (2 Corinthians 1:20).

By Nat Crawford President | Stand Firm Ministries