“For behold, I create new heavens and a new earth; And the former things will not be remembered or come to mind”. (Isaiah 65:17)

The blessings of faithful Israel in the coming kingdom are described.

new heavens and a new earth. Israel’s future kingdom will include a temporal kingdom of a thousand years and an eternal kingdom in God’s new creation. The prophet uses the eternal kingdom here as a reference point for both. Isaiah’s prophecy does not make clear the relationship between the kingdom’s two aspects as does later prophecy (Rev. 20:1–21:8). This is similar to the compression of Christ’s first and second advents, so that in places they are indistinguishable. (John MacArthur)

If these promises were in part fulfilled when the Jews, after their return out of captivity, were settled in peace in their own land and brought as it were into a new world, yet they were to have their full accomplishment in the gospel church, militant first and at length triumphant. The Jerusalem that is from above is free and is the mother of us all. In the graces and comforts which believers have in and from Christ we are to look for this new heaven and new earth. It is in the gospel that old things have passed away and all things have become new, and by it that those who are in Christ are new creatures. (Matthew Henry)