This psalm also probably dates from 2 Chronicles 20:20. Tekoa was only three hours' march from Jerusalem and commanded an extensive view, so that Psalms 48:4-5 were literally true.
The psalmist celebrates the beauty and glory of Zion, Psalms 48:1-3. The Church today is the City of the great King. Apart from God, the fairest palace is no refuge; but a cottage becomes a palace if God is known and loved there. Judah's recent deliverance is gratefully commemorated, Psalms 48:4-8. It is a sublime picture: the gathered array, the dismay, flight, and destruction of the foe. Then comes the call to loving thought on God's care and goodness, Psalms 48:9-14. Notice those two sentences-"As we have heard, so we have seen," Psalms 48:8; and, "As is thy name, so is thy praise," Psalms 48:10. Whatever we have been told by our fathers about God, God is prepared to be and do for us; and our aim should be to praise Him worthily. Think of His love till your heart kindles to praise; and remember that this God is yours forever and ever. Let us surrender to Him the guidance of every step, until we pass through death into His immediate presence. [source]