The Lord would not show his holiness only by judging nations for their pride, arrogance, and hostility toward his chosen people. He would also bring his people back to Israel. There, they would live safely, build homes, and plant vineyards. These were common signs of covenant blessings in the Old Testament (see Micah 4:4; Zechariah 3:10).
After God punished the neighboring nations and restored his people, they would find peace. The nations would recognize God as the Sovereign Lord through his powerful judgments, and Israel would know him as the Lord their God. This title reflects God's covenant relationship of worship and fellowship with them.