LCMS interprets James 2:24 in the context of Luther's commentary and the Formula of Concord's doctrine of justification by faith alone. James addresses the problem of faith that lacks corresponding works — a dead or demonic faith (James 2:19). The verse teaches that saving faith necessarily produces works; true faith is a living faith that actively manifests itself in works of love and obedience.

Justification (the forensic declaration of righteousness) is by faith alone, sola fide. Works are the fruit of justification and belong to sanctification. The LCMS carefully distinguishes the meritorious cause of justification (Christ's righteousness imputed by faith) from the necessary fruit of justification (works). James 2:24 is harmonized with Paul's doctrine of sola fide through this distinction.