The meaning of denarion in Matt 20:1-16 is seemingly of less importance among scholars who either explain its literal meaning or ignore it completely. Few authors who render the denarius as eternal life provide insufficient interpretative mode. Consequently, the paper interpreted the meaning of the denarius as reward in the parable of Matthew 20:1-16. Using contextual hermeneutics, it expounds the meaning of denarion in the parable of the laborers in the vineyard (Matt 20:1-16). This study shows that parables are not literal; a denarion plainly was used to pay hired workers for a day’s wages. The context of the parable was based on rewards for those who make denials for the kingdom of God according to the larger block of Matt 19:16-20:16. Since eternal life was the theme of the context in Matt 19:16-20:16, the denarion could correctly be interpreted as eternal life.