Panentheism (from Greek (Theós) "God"; "all-in-God") is a belief system which posits that God exists and interpenetrates every part of nature, and timelessly extends beyond as well. Panentheism is distinguished from pantheism, which holds that God is synonymous with the material universe.
God and Creation
In panentheism, God is viewed as creator and/or animating force behind the universe, and the source of universal truth. This concept of God is closely associated with the Logos as stated in the 5th century BC works of Heraclitus (ca. 535–475 BC), in which the Logos pervades the cosmos and whereby all thoughts and things originate; e.g., "He who hears not me but the Logos will say: All is one." A similar statement attributed to Jesus by the John 10:30 and interpreted by the New Thought movement as being synonymous: "The Father and I are one."
While pantheism asserts that God and the universe are coextensive, panentheism claims that God is greater than the universe and that the universe is contained within God. Panentheism holds that God is the "supreme affect and effect" of the universe. See Cosmotheism
In Eastern Orthodox Christianity, creation is not "part of" God, and the Godhead is still distinct from creation; however, God is "within" all creation, thus the parsing of the word in Eastern and Oriental Orthodox Christianity is "pan-entheism" (God indwells in all things) and not "panen-theism" (All things are part of God but God is more than the sum of all things).
The Eastern Orthodox and Oriental Orthodox Churches have a doctrine called panentheism to describe the relationship between the Uncreated (God, who is omnipotent, eternal, and constant) and His creation that bears surface similarities with the panentheism described above but maintains a critical distinction.
Most specifically, these Churches teach that God is not the "watchmaker God" or mechanical God of philosophy found in the Western European Enlightenment. Likewise, they teach that God is not the "stage magician God" who only shows up when performing miracles. Instead, the teaching of both these Churches is that God is not merely necessary to have created the universe, but that His active presence is necessary in some way for every bit of creation, from smallest to greatest, to continue to exist at all. That is, God's energies maintain all things and all beings, even if those beings have explicitly rejected Him. His love of creation is such that he will not withdraw His presence, which would be the ultimate form of slaughter, not merely imposing death but ending existence, altogether. By this token, the entirety of creation is sanctified, and thus no part of creation can be considered innately evil. This does not deny the existence of evil in a fallen universe, only that it is not an innate property of creation.
This Orthodox Christian panentheism is distinct from a fundamentalist panentheism in that it maintains an ontological gulf or distance between the created and the Uncreated.