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Daniel 2:46-49 meaning
The wisemen were right when they told the king that there is no one else who could tell him what he saw in his dream except gods, whose dwelling place is not with mortal flesh. Daniel makes this very clear to Nebuchadnezzar, telling him that the great God was the one who told him what the king saw in his dream and what the dream meant. It was not from Daniel's power or wisdom, but God's.
Because of this, Nebuchadnezzar understood that Daniel's God was the true God. Surely your God is a God of gods and a Lord of kings and a revealer of mysteries, the king said to Daniel, since you have been able to reveal this mystery. Nebuchadnezzar gave orders to present the True and Living God an offering and fragrant incense.
As the king promised in verse 6 of giving gifts and a reward and great honor to the one who told and interpreted the dream, Nebuchadnezzar promoted Daniel and gave him many great gifts, and he made him ruler over the whole province of Babylon and chief prefect over all the wisemen of Babylon. Daniel asked that the king appoint his friends and fellow Israelites, Shadrach, Meshach and Abed-nego over the administration of the province of Babylon. The King obliged, and Daniel took his place as a top official in Nebuchadnezzar's court.
We can imagine that when Daniel heard the news he was to be killed, it would have been frightening and discouraging. Daniel prayed for deliverance. But God used a terrible circumstance to elevate Daniel to one of the highest positions in all the land. This is consistent with the biblical theme of God turning difficult circumstances into great blessings for those who follow Him faithfully.
Thus Daniel Chapter 2 outlines all of human history from that point until the end. It foretells the dominant kingdoms of men, and assures us that eventually they will be replaced with the kingdom of God.