To be created in the image of God means that humans were uniquely fashioned with reasonable, immortal souls, endowed with true knowledge, righteousness, and holiness, and designed to reflect His character and authority. While sin has marred this image, it is being progressively renewed through the grace of the gospel as we are conformed to the likeness of Christ, the perfect image of the Father.
The Reformed tradition, including the 1689 LBCF Ch.4 §2, teaches that humans were created male and female with reasonable and immortal souls. We were made with the law of God written upon our hearts, possessing true knowledge, righteousness, and holiness. This aligns with the Westminster Larger Catechism Q.17, which emphasizes that our creation was designed specifically for communion with God and to exercise dominion over the creatures. We were not created wicked, but good, in order that we might know, love, and glorify our Creator (Heidelberg Catechism Q.6). As Scripture declares, "And God created man in his own image, in the image of God created he him; male and female created he them."
Though originally upright, humanity revolted against God, forfeiting these gifts and entailing upon ourselves darkness and perverseness (Canons of Dort Head 3/4 Art.1). However, the gospel reveals that we are not left in this ruin. We find our true restoration in Jesus Christ, who is the "express image of his substance" (On the Christian Faith Ch.7). By faith in Him, we are being transformed. The Apostle John assures us: "Beloved, now are we children of God, and it is not yet made manifest what we shall be. We know that, if he shall be manifested, we shall be like him; for we shall even as he is."