What does Psalm chapter 123 mean?

This is one of the songs "of ascents" (Psalm 120—134) used by pilgrims making their way "up" to Mount Zion (2 Samuel 5:7; 1 Kings 8:1) and Jerusalem for annual feasts (Deuteronomy 16:16). The psalm may have been inspired, in part, by Israel's experiences rebuilding the city walls after returning from exile.

Turning to God during a time of stress, the psalmist describes his attitude as watchful and humble. Rather than simply waiting for an answer, he gives active attention. The focus is on the Lord's "hand," suggesting His actions or subtle messages. The writer of the psalm is not merely waiting, or listening, but intent on knowing what the Master will do. The psalmist intends to maintain this approach until the Lord answers. At the same time, the psalmist is respectful (Psalms 123:1–2).

Israel was conquered and scattered by the Babylonian Empire (2 Chronicles 36:17–21). Seventy years later, they began to return and rebuild Jerusalem (Ezra 2:1). This was met with opposition from enemy nations, who laughed at Israel's project (Nehemiah 4:1–4). This may be what inspired the psalmist's frustration at suffering "contempt." This may also refer more generally to the attitude of surrounding nations towards Israel, or to the way wealthy and powerful people look down on the less privileged (Psalm 123:3–4).