God restores national Israel through regathering and a process of renewal that culminates in the New Covenant. After punishing Israel for multiplied iniquities and scattering the people, He brings them back to the land promised to their fathers and removes their iniquity in a single day on the Day of Atonement. Beyond this initial forgiveness, He establishes an everlasting covenant of peace with them. Under this covenant He gives them a new heart and a new spirit, removing the heart of stone and placing His own Spirit within them so that they walk in His statutes and keep His judgments. This circumcision of the heart enables Israel to love and serve Him with all the heart and soul, a capacity the ancient nation lacked. The New Covenant therefore adds permanent value by ensuring that restored Israel never again backslides or incurs divine wrath. Because the covenant is everlasting, Israel remains faithful and becomes the instrument through which the gospel of the Kingdom reaches every nation. Converted Israelites, led out from Jerusalem under the guidance of spirit beings, preach that gospel to Gentiles and to fellow Israelites living in territories apportioned according to the twelve tribes. In this way the New Covenant fulfills God's purpose to work salvation throughout the earth, positioning a holy nation as the channel of blessing to all families of the world.

The New Covenant is announced in Jeremiah 31 and repeated in Hebrews 8:8 as a covenant that God will make with the house of Israel and the house of Judah. No reference to Gentiles appears in these direct statements. Although Scripture elsewhere addresses Gentiles and although Paul's ministry reached them, the specific terms of the New Covenant remain tied to Israel and Judah. Paul underscores this in Romans 9:4-5 by listing the covenants among the privileges that pertain to Israelites, noting that Christ came from them according to the flesh. God established His patterns through Israel at the beginning and does not deviate from them. Because the Old Covenant was made with Israel, the New Covenant continues through the same nation. Gentiles who were once aliens from the commonwealth of Israel and strangers from the covenants of promise are brought near by the blood of Christ and grafted into the olive tree whose root is Christ. In this way they become part of Israel rather than forming a separate covenant people. The true Israel is defined inwardly by circumcision of the heart. Those who are Christ's are Abraham's seed and heirs according to the promise. Within the Church there is neither Jew nor Greek; all become one spiritual Body, the Israel of God. This spiritual Israel, drawn from every ethnic background yet formed according to the pattern begun with Jacob, is the remnant, the children of promise, and the vessels of mercy. It is this Israel that will marry the Lamb. Thus the New Covenant remains Israel's covenant, and every participant—whether of physical Israelite descent or grafted in from the Gentiles—must become a real Israelite in heart to enter and keep it.

The New Covenant is presented as the better covenant of which Christ is Mediator, established on better promises than the first covenant made with Israel at the Exodus. It is explicitly described as the covenant that God will make with the house of Israel and the house of Judah after those days, in which He will put His laws into their minds and write them on their hearts, become their God, and they will be His people. Under this covenant none will need to teach his neighbor to know the Lord, for all will know Him from the least to the greatest, and God will be merciful to their unrighteousness and remember their sins and lawless deeds no more. This same covenant is identified as the perpetual covenant of peace, an everlasting covenant that will see its full expression with physical Israel after Christ returns, when they dwell in the land given to Jacob, David serves as their prince forever, the sanctuary is established in their midst, and the nations recognize that the Lord sanctifies Israel. The material states that this covenant of peace has already been given as a gift and responsibility to those called into the body of Christ, who are therefore under it now. Through the one offering of Christ those being sanctified are perfected forever, and the Holy Spirit bears witness to the covenant by declaring that sins and lawless deeds will be remembered no more. This reality is connected to the requirement that those under the covenant hold fast their confession, draw near in full assurance of faith, stir up love and good works, and not forsake assembling, while willful sin after receiving the knowledge of the truth leaves no further sacrifice and risks trampling the blood of the covenant.