This article inquires into the conditions of possibility and true dimensions of an adequate theory of New Testament interpretation. After discussing the various understandings of objectivity and subjectivity as they function in the work of biblical interpretation the article presents the major developments in contemporary hermeneutical theory which bear upon the renewal of biblical interpretation and then undertakes an exploration of the special problems raised by the New Testament considered as scripture, i.e., as the sacred text of the believing community of Christians. The article concludes to the necessity of a new hermeneutical theory which can do justice to the dialectic between historical explanation and transformative understanding of the New Testament.