He forgave their iniquity
Forgiveness is a recurring theme in the Bible, demonstrating God's willingness to restore relationships with His people. Iniquity refers to moral perversity or sin, and the act of forgiveness implies a removal of guilt. This forgiveness is not earned but granted by God's grace. The sacrificial system in Leviticus foreshadows the ultimate forgiveness through Christ's sacrifice, as seen in Hebrews 10:10-12, where Jesus' offering is described as once for all.

and did not destroy them.
Despite Israel's rebellion, God chose not to annihilate them, reflecting His covenant faithfulness. This restraint is evident throughout the wilderness wanderings, where God repeatedly spared the Israelites (Numbers 14:11-20). The concept of divine patience is further explored in 2 Peter 3:9, where God's delay in judgment is attributed to His desire for repentance.

He often restrained His anger
God's anger, or righteous indignation, is a response to sin and injustice. However, His restraint demonstrates His longsuffering nature. The Hebrew term for anger, "aph," can also mean "nostrils," symbolizing the flaring of nostrils in anger. Yet, God chooses to hold back, as seen in the intercessions of Moses (Exodus 32:11-14) and the prophetic warnings throughout the Old Testament. This restraint is a testament to His desire for repentance rather than destruction.

and did not unleash His full wrath.
The full wrath of God is a terrifying prospect, often associated with final judgment (Revelation 14:10). In the Old Testament, God's wrath is sometimes partially revealed through plagues or military defeat, but His full wrath is reserved for ultimate judgment. The withholding of this wrath points to His mercy and the opportunity for repentance. In the New Testament, Jesus absorbs the wrath of God on behalf of humanity (Romans 5:9), providing a way of escape and reconciliation with God.

The verse opens with a stunning contrast. After forty-six lines recounting Israel’s stubborn unbelief (Psalm 78:10-37), the psalmist says, “And yet He was compassionate.” It means God’s heart stayed tender even when His people’s hearts were hard. We see the same warmth in Exodus 34:6—“The LORD, the LORD God, compassionate and gracious, slow to anger, abounding in loving devotion and faithfulness.” Lamentations 3:22 echoes, “Because of the loving devotion of the LORD we are not consumed, for His mercies never fail.” God’s compassion is not a mood swing; it’s His settled character, expressed even when we least deserve it.

Forgiveness here is not theoretical; it is an act. Numbers 14:19-20 records Moses pleading, “Pardon the iniquity of this people,” and the LORD answering, “I have pardoned them according to your word.” Centuries later John writes, “If we confess our sins, He is faithful and just to forgive us our sins” (1 John 1:9). God’s willingness to forgive proves the seriousness of sin on the one hand and the sufficiency of His covenant love on the other. Isaiah 55:7 says it plainly: “Let the wicked forsake his way… and He will freely pardon.”

Several times God had every legal right to wipe out the nation (Exodus 32:10-14; Deuteronomy 9:13-14), yet Psalm 78 reminds us He stayed His hand. Nehemiah 9:31 sums it up: “In Your great compassion You did not put an end to them or abandon them.” Malachi 3:6 gives the reason: “I, the LORD, do not change; therefore you, O descendants of Jacob, are not consumed.” The survival of Israel—and by extension the preservation of the line leading to Christ—rests on God’s covenant faithfulness, not on human performance.

Anger rightly flared against idolatry, but it was “restrained.” Psalm 103:8-10 parallels that idea: “The LORD is compassionate and gracious, slow to anger… He has not dealt with us according to our sins.” Isaiah 48:9 shows divine self-control: “For the sake of My name I defer My anger.” Nahum 1:3 confirms, “The LORD is slow to anger but great in power.” God’s patience is not weakness; it is mercy holding power in check to give space for repentance.

The text literally describes God keeping back “His full wrath.” Ezra 9:13 acknowledges, “Our God, You have punished us less than our iniquities deserve.” Jeremiah 30:11 notes that, though disciplined, Israel would not be annihilated. For believers today the fullest expression of withheld wrath is found at the cross: “Since we have now been justified by His blood, how much more shall we be saved from wrath through Him!” (Romans 5:9). Isaiah 53:5 reminds us that the chastisement that brought us peace was laid on Christ, sparing us the weight of judgment we could never bear.

Psalm 78:38 paints a five-fold portrait of divine mercy: compassionate heart, forgiving grace, protective restraint, patient anger, and limited judgment. Each phrase testifies that God’s covenant love outlasts human rebellion. The same God who spared Israel extends that mercy through Christ today, offering forgiveness and shielding us from the wrath we deserve.