Panenteisme leer dat die heelal in God bestaan, maar dat God meer is as die heelal. Anders as panteisme (wat se God is die heelal) en teisme (wat se God is apart van die heelal), leer panenteisme dat God die heelal insluit maar ook transendeer – soos ‘n spons wat in die see dryf: die see is in die spons, maar die see is veel groter as die spons. So bevat God die hele heelal binne Homself, maar Sy wese en bestaan gaan ver verder as die heelal wat Hy geskape het en onderhou. Hierdie siening probeer om God se immanensie en transendensie te kombineer, maar kan die onderskeid tussen Skepper en skepping ondermyn.
Panentheism teaches that the universe exists in God, but that God is more than the universe. Unlike pantheism (which says God is the universe) and theism (which says God is apart from the universe), panentheism teaches that God includes the universe but also transcends it – like a sponge floating in the sea: the sea is in the sponge, but the sea is much greater than the sponge. Thus God contains the entire universe within Himself, but His being and existence extend far beyond the universe that He created and sustains. This view attempts to combine God’s immanence and transcendence, but can undermine the distinction between Creator and creation.