WELS teaches that Jesus Christ's death on the cross is the central redemptive event of history and that his death constitutes a full, perfect, and sufficient satisfaction for the sins of all humanity. The primary theory of atonement is penal substitution—Christ, as our sinless Substitute, bore the penalty (eternal death and God's divine justice) that we deserved, thereby rendering perfect satisfaction for transgression.

The atonement is objective in its character; it is an accomplished fact independent of human belief or acceptance. Objective justification—the declaration that all people are righteous before God because of Christ's work—is a fundamental WELS doctrine. However, this objective justification becomes personally effective only when received through faith in Christ, which is created and sustained by the Holy Spirit.

While penal substitution is the primary motif, WELS acknowledges that Christ's death has manifold meanings: victory over sin, death, and the devil; satisfaction for transgression; redemption by a ransom; propitiation of God's wrath. The universality of the atonement is affirmed—Christ died for all people, not just for an elect few. WELS distinguishes itself from Reformed theology by rejecting limited atonement.