avajānanti māṃ mūḍhā mānuṣīṃ tanumāśritam |paraṃ bhāvamajānanto mama bhūtamaheśvaram ||
The deluded disregard me when I dwell in a human body, for they do not know my higher nature as the great Lord of all beings.
Explanation
Krishna has just said that he oversees nature (prakṛti) as the unattached presiding witness. Here he explains that people with clouded understanding (mūḍha) see only his human form and miss his higher nature (para bhāva) as the Lord of all beings. Traditions differ on how to read this: some take it as a statement about God's real descent in human form (avatāra), others stress the human body as a veil over the universal Self.