This chapter narrates an episode during the second year of King Nebuchadnezzar’s reign when he had a troubling dream. The king demanded both the dream and its interpretation from his magicians, astrologers, and wise men, threatening death if they failed. Unable to comply, they admitted that only the gods could reveal such secrets, angering the king, who ordered their execution.

Daniel, a captive in Babylon, requested time from the king to provide the dream's interpretation. He and his companions prayed to God for mercy, and God revealed the dream to Daniel in a night vision. Daniel praised God for His wisdom and power before approaching the king.

Daniel explained that the dream depicted a giant statue made of gold, silver, bronze, iron, and clay, representing successive kingdoms. A stone cut without hands struck the statue, destroying it, and grew into a mountain filling the earth—symbolizing God's eternal kingdom that will replace all earthly kingdoms.

The interpretation awed Nebuchadnezzar, who acknowledged Daniel’s God as the "God of gods" and rewarded Daniel with high honors, making him ruler over Babylon and leader of its wise men. At Daniel’s request, Shadrach, Meshach, and Abednego were also given administrative roles, while Daniel served at the king's court.