What does Genesis 28:16 mean?
The Lord has appeared to Jacob in a dream, giving to him the promises of Abraham as well as a vow to be with Jacob wherever he goes and to bring him back to the land of promise (Genesis 28:10–15).Jacob now wakes up. How will he respond to this visit from the Lord? Emotionally, he feels awe and fear. He also finds ways to worship God as he makes a powerful connection between the place he slept for the night and God's holiness.
Here Jacob says in surprise that he didn't realize the Lord was in this place. Modern Christians don't tend to associate God's holiness with physical locations. We think of God as being everywhere. Ancient people, especially, believed that certain spots were set aside by God as places to connect with Him. God honored that idea, later instructing Israel how to treat places that contained His presence as special and holy.