"Glory to God in the highest, and on earth peace to men on whom his favor rests." (Read: Luke 2:8-14).
The doxology "Glory to God in the highest" is the climax of the story. Its two parts relate to heaven and to earth respectively. In Luke's account of the Triumphal Entry, the crowds say, "Peace in heaven and glory in the highest" (19:38). Verse 14b is best translated as in the NIV" "on earth peace to men on whom his favor rests." Luke emphasizes the work of Christ on earth (cf. 5:24).
The "peace" here is that which the Messiah brings to those on whom God bestows his grace (cf. 1:79). Those whom Jesus healed or forgave on the basis of their faith could "go in peace" (7:50; 8:48). Those on whom God's "favor" rests are the "little children" (10:21) to whom God reveals truth according to his "good pleasure."
[NIV BIBLE COMMENTARY Volume 2: New Testament].
JESUS IS LORD.