This study explores the Shepherd Controversy 1975-1982 and the contemporary debate on covenant and justification by faith from the perspectives of historical, systematic, and biblical theology. The distinctive contribution lies in the identification that the Shepherd Controversy as a logical outcome of rejecting the distinction between Law and Gospel at Westminster Seminary in Philadelphia. The larger problem is that Norman Shepherd and other associated theologians reject the distinction between Law and Gospel, injecting their monocovenantalism into the theologies of Calvin, the Westminster Standards, and Murray. The result has been hermeneutical and theological confusion among some of the followers of the Union with Christ School scholars. Reformed theonomists led by Greg Bahnsen, Auburn Avenue theologians, and pastors are also monocovenantalists and have been influenced by the Union with Christ School scholars directly and indirectly. Their common denominator is the rejection of the