This chapter begins with Nebuchadnezzar having a dream that shakes him and confuses him. He is not able to sleep well after having this dream so he decides to have it interpreted. It was common back then for astrologers to attempt to interpret dreams, so he calls his astrologers, magicians and the chaldeans and demands that they not only interpret the dream but first tell him what the dream was even about without him telling them, so he will know that they aren't giving him a false interpretation. The chaldeans say this is impossible for any man to do so he orders them to be killed.
This is when Daniel comes in, he asks the king to give him some time to accomplish this. Daniel then goes back to Hananiah, Mishael, and Azariah and they all pray that God would give them insite and wisdom on this. Daniel has a night vision and receives the dream as well as what it means.
Before Daniel told Nebuchadnezzar the dream he first gave credit where it was due and explained that by the grace of God, he was given knowledge of the dream and its meaning. Daniel explains the image Nebuchadnezzar saw, a head of fine gold, chest and arms if silver, belly and thighs if bronze, legs of iron and feet of part iron and part clay. A stone was cut out without hands which struck the image on its feet and broke them in pieces. The iron, clay bronze and silver were then crushed together and the wind carried them away so that no trace of them were left. And the stone that struck the fert became a great mountain and filled the whole earth. This dream revealed Daniel's God as the power behind all earthly kingdoms.
Daniel explains that God has given Nebuchadnezzar a kingdom of power, strength and glory and has made him ruler, he is the head of gold. The other medals were kingdoms to come and the stone was Gods kingdom. This showed the power God has and He is behind all earthly kingdoms, He is in control. Nebuchadnezzar said that Daniel's God was the God of all gods and appointed Daniel to have a seat in the gate of the king.
From this we learn of another way God can communicate with us. God will speak to people, but for some who have a hard time quieting their minds to hear Him, he may convey a message through a dream. God showed His power when the magicians and astrologers failed to do something impossible to them, but possible for God. He also showed that He is in control and is behind kings of kingdoms whether they know it or not. God can use world leaders to fulfill His plans, it might not make sense to us but it all works out with His bigger picture.