The fear of the LORD is the beginning of wisdom; a good understanding have all those who do His commandments. His praise endures forever.
The fear of the LORD means to properly reverence our Creator, who has our best interests in mind.
There is a progression described in this passage. We begin with a proper reverence for God, which leads us to obey His commands whether we understand them or not. As we obey, the process of obedience teaches us why His commandments are good. That “good understanding” leads us to praise Him for His wisdom in giving us these commands.
Read more about the fear of the Lord in the article “Fear of the Lord: What Does It Mean?”