Mormonism teaches that Christ’s death on the cross (Atonement) is an act of grace. As a result, all people will be saved from physical death and be resurrected. For this reason, a Mormon will say they are saved by grace. The LDS Church extends the concept of grace in two different ways: a divine help and an enabling power.
“Through grace, made available by the Savior’s atoning sacrifice, all people will be resurrected and receive immortality. But resurrection alone does not qualify us for eternal life in the presence of God. Our sins make us unclean and unfit to dwell in God’s presence, and we need His grace to purify and perfect us ‘after all we can do’ (2 Nephi 25:23).” (True to the Faith, p. 77) In this well-known passage from the Book of Mormon, grace is the divine help and strength a Mormon can receive through the Atonement to help them remain obedient to fulfill their covenant promises and eternally progress.
The other part of grace involves receiving the “fulness of God’s grace.” This enabling power allows a Mormon to meet God’s standard of perfection. Once a Mormon has done all they can do to follow His commandments, grace fills in the gap of worthy efforts. This will enable a faithful Mormon to qualify to live eternally with Heavenly Father in the celestial kingdom. Receiving grace is entirely dependent upon a Mormon’s obedience and worthiness.
Biblical Christianity teaches:
Grace is the unmerited favor granted towards all people who by nature are sinful and cannot on their own earn forgiveness for their sins. This favor came in the form of Jesus Christ, God made flesh, and provided for humankind’s redemption through His sacrificial death. This love toward the unlovable and undeserving extends to all people (1 John 2:2).