WELS teaches that salvation is entirely by grace alone through faith alone in Christ alone. The doctrine of justification—the forgiveness of sins and the declaration of righteousness before God—is by God's grace alone and not by human merit or works. Salvation encompasses the work of the Holy Spirit in calling sinners to faith, regenerating the heart, and sustaining faith unto completion.

WELS emphasizes the doctrine of universal objective justification: Christ's atonement has secured the forgiveness of all people's sins objectively, regardless of whether they believe. However, this objective justification becomes subjectively effective and personally saving only through faith in Christ. Faith itself is created and sustained by the Holy Spirit through the means of grace—the Word of God and the sacraments.

WELS affirms baptismal regeneration: when water baptism is administered with God's Word in the name of the Trinity, it effects forgiveness of sins, imparts new life, and incorporates the baptized into the body of Christ. Infants are baptized and regenerated through baptism. However, apostasy is possible—a baptized Christian can fall from faith and lose salvation through willful rejection of Christ and the gospel. The concept of 'once saved, always saved' is rejected.