Kṛṣṇa explains His relationship with the universe. He says that the entire world is pervaded by Him in His ‘avyakta-mūrtinā’, His unmanifested form. All living beings rest in Him, yet He is not contained within them. This is the mystery of God’s simultaneous presence and absence. God is like the space in a room; everything is ‘in’ the space, but the space is not the objects. He supports the universe like the screen supports a movie, but He is not a character in the movie. He provides the energy and the platform for all existence, yet He remains independent and transcendental. This verse corrects the idea that God is ‘only’ the universe (pantheism) or that He is ‘only’ far away in heaven. Kṛṣṇa is saying, “I am everywhere as energy, but I am also distinct as a Person.” By understanding that everything rests in Kṛṣṇa, Arjuna can see that his relatives and his life are all within God’s careful and absolute jurisdiction.