It is better to take this verse in apposition with the foregoing:
“God sublime in the council of the holy ones,
And terrible among those surrounding him.”
For a picture of the court of heaven see Job 1:6.
Related Commentaries of Psalms 89:7
Psalms 89:7
7 God is greatly to be feared in the assembly of the saints, and to be had in reverence of all them that are about him.