Ezekiel 36:23
And I will sanctify my great name, which was profaned among the heathen, which ye have profaned in the midst of them; and the heathen shall know that I am the LORD, saith the Lord GOD, when I shall be sanctified in you before their eyes.
Israel profaned God's name among the heathen by its conduct, imitating practices displeasing to Him, so that the nations saw a contradiction between its claim to be His people and its behavior. God will sanctify His great name, which was thus profaned, and make it known as holy among the nations through His people. When He is sanctified in them before their eyes, the heathen shall know that He is the Lord.
He acts for His holy name's sake and in mercy, not because Israel deserves it or has always done right. Even its prosperity after departing from the light He gave is due to His mercy, so that His name will not be dishonored. He does this by gathering and restoring His people, cleansing them from sin and idols, giving them a new heart and spirit, and enabling them to keep His statutes and obey. This restoration is a blessed reconciliation.
God's name is honored before the world when His people represent His truth and live in a way that reflects Him. The sanctifying power of truth in their lives distinguishes them from the world. That life includes making peace with Him and being willing to sacrifice to help others.