The article discusses the concentration of Martin Luther’s theology on the Christian existence. There are three main areas pointing to this key idea. Firstly, the description of justification of the people in the categories of freedom gained through the experience of faith, which leads to a thankful service towards one’s neighbour. Secondly, sacramental understanding of the working of God’s Word as a performative that changes the world. It defines not only the understanding of the sacraments, with the key role of Baptism as a foundation for everyday actualisation of Christian life in penance, which strives for fighting off the sinfulness of an old, sinful man, and leads to building the man’s own justice based on the alien justice of Christ, but it is also the basis for the communion of believers – the church, as well as for the orders of creation, which structure the current reality. Thirdly, the remarks on theological knowledge closed in the triad prayer–meditation–temptation and theological weight of the experience of differentiating between the Law and the Gospel.