What does Psalm 126:1 mean?
Zion is another name for Jerusalem, the capital city established by David (1 Kings 8:1).The psalmist seems to reflect on the release of Jewish exiles from Babylon (Ezra 2:1). The people were taken from their homeland by Babylon (2 Chronicles 36:17–21). News that they could come home would have seemed too good to be true. The Lord had predicted through the prophet Jeremiah that the captivity would last seventy years. After this, God would bring His people back to their homeland (Jeremiah 29:10). The news sparking such celebration was fulfillment of those promises (Jeremiah 29:11–14). God brought the people back.
The full regathering of Israel and restoration of the nation's fortunes awaits the return of the Messiah to the earth. Then He will fulfill His promise: "I will bring them back because I have compassion on them" (Zechariah 10:6).