This passage discusses how Jesus is the cornerstone of God's spiritual temple and how believers are living stones being built into that temple. It says Jesus was rejected by people but chosen by God for great honor. Believers are a chosen people, a royal priesthood, and God's possession. They are called to show God's goodness and mercy to others. The passage encourages believers to reject worldly desires and stand firmly on the cornerstone of Jesus as they serve in God's household.