We have seen that in the first three chapters of Daniel King Nebuchadnezzar came to an increasing appreciation of the greatness of Yahweh. In this chapter he learned that Yahweh is sovereign over kings as well as kingdoms (cf. ch. 1). As the head of Gentile power, Nebuchadnezzar's humbling probably has typical significance suggesting the final overthrow of Gentile world dominion by the smiting stone, Jesus Christ (2:35, 44-45). However, the main lesson of the chapter is the sovereignty of Yahweh over the greatest human sovereign in the world (cf. vv. 17, 18, 22, 24, 25, 26, 30, 31, 32, 34, 36, 37).
"In the light of other passages in the Bible speaking prophetically of Babylon and its ultimate overthrow, of which Isaiah 13 and 14 may be taken as an example, it becomes clear that the contest between God and Nebuchadnezzar is a broad illustration of God's dealings with the entire human race and especially the Gentile world in its creaturely pride and failure to recognize the sovereignty of God."133
The fact that Babylon falls in the very next chapter seems to support this conclusion.
The form of the chapter is unusual. It is a decree that Nebuchadnezzar issued following his recovery from temporary insanity. The decree contains the record of events resulting in the issuing of the decree. Daniel himself may have written this account as a decree, or he may have inserted the king's actual decree from another source. It is unique in Scripture being the only chapter composed by a pagan, if Nebuchadnezzar wrote it and if he was unconverted.
The structure of the chapter is essentially ABBA. It begins and ends with praise of God (vv. 1-3, 34-37), and in the middle there is the narration of Nebuchadnezzar's dream (vv. 4-18) and its interpretation and fulfillment (vv. 19-33).
The time of this incident seems to be considerably later than the event recorded in chapter 3. Nebuchadnezzar had finished extensive building projects (v. 30). He reigned a total of 43 years (605-562 B.C.). Perhaps it was toward the end of his reign that these events transpired.134The Septuagint dates the incident in the eighteenth year of Nebuchadnazzar's reign (v. 4, LXX), but that seems to reflect the opinion of the translators rather than the inspired writer.135