Daniel 2 (the second chapter of the Book of Daniel) tells how Daniel interpreted a dream of Nebuchadnezzar, king of Babylon. The king saw a gigantic statue made of four metals, from its gold head to its feet of mingled iron and clay; as he watched, a stone "not cut by human hands" destroyed the statue and became a mountain filling the whole world. Daniel explained to the king that the statue represented four successive kingdoms beginning with Babylon, while the stone and mountain signified a kingdom established by G-d which would never be destroyed nor given to another people. (The dream and its interpretation are given in verses 31-45). Nebuchadnezzar then acknowledges the supremacy of Daniel's G-d and raises him to high office in Babylon.
The overall theme of the Book of Daniel is G-d's sovereignty over history. On the human level Daniel is set against the Babylonian magicians who fail to interpret the king’s dream, but the cosmic conflict is between the god of Israel and the false Babylonian gods. What counts is not Daniel’s human gifts, nor his education in the arts of divination, but Divine Wisdom and the power that belongs to G-d alone, as Daniel indicates when he urges his companions to seek G-d’s mercy for the interpretation of the king’s dreams.