na cha matsthaani bhootaani pashya me yogamaishvaram |
bhootabhrinna cha bhootastho mamaatmaa bhootabhaavanaha || 5 ||

But, neither do all beings reside in me. Behold my divine yoga! I am the sustainer and creator of all beings, but my self is not contained in (those) beings.
na : nor
cha : but
matsthaani : reside in me
bhootaani : all beings
pashya : behold
me : my
yogam : yoga
aishvaram : divine
bhootabhrit : sustainer of beings
na : not
cha : and
bhootasthaha : contained in beings
mama : my
aatmaa : self
bhootabhaavanaha : creator of beings
Shri Krishna takes the argument of the prior shloka one step further. He says that what we see through our eyes, hear through our nose, touch through our skin is just a series of names and forms. It is a divine power of Ishvara, just like the skill of a magician. These names and forms appear as if they are created, sustained and destroyed by Ishvara, but in reality, there is no such thing.
We notice that the first statement “all beings do not reside in me” contradicts the statement in the last shloka “all beings are based in me.” This is because each statement is made from a different perspective, based on our level of understanding.
If we think that the world of names and forms is real, then Ishvara says that all beings are based in him. It is like the little girl thinking that the foam and the waves in the ocean are real entities.
But, if we advance our understanding, if we know that the world of names and forms is a play of Ishvara, then he says that none of those beings, those names and forms, reside in him. The illusion of the magician does not reside in the magician, because an illusion cannot reside in something real. That is why Shri Krishna says that Ishvara’s self is not contained in all beings.
Now, even though we have this knowledge, will still see, hear, touch, feel and taste the world. Those forms in the world will be created, survive, and eventually dissolve. Our near and dear ones will prosper, but will also leave us one day. All of this is a play of Ishvara’s maayaa. To this end, he asserts that he is the creator and sustainer of these names and forms.
As an example, we look up at the sky and observe that it is blue in colour. We know that the blue colour is just an illusion caused by the scattering of light waves. However, even after we know this, our eyes still report the color of the sky as blue. Similarly, Shri Krishna urges us to recognize that Ishvara’s divine power of maayaa, his “home theatre system”, creates all the names and forms that our lives are made up of.
So then, what is the essence of these two key shlokas? Our senses will always report names and forms to our mind and intellect. If we know that they are all illusory names and forms, we will gain liberation. If we get sucked into thinking that they are real, we will be trapped in their apparent reality.
This teaching requires further elaboration. To that end, Shri Krishna provides an illustration in the next shloka.