ESV - 42 The queen of the South will rise up at the judgment with this generation and condemn it, for she came from the ends of the earth to hear the wisdom of Solomon, and behold, something greater than Solomon is here.
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As the verse cited in the question indicates, Jesus was referring not to the generation in which He was then living, but to the final judgment at the close of the age, when the resurrected dead of all history will be gathered before Him for judgment, irrespective of the eras in which they lived. At that time, the Queen of the South (also called the Queen of Sheba), who had been willing to travel from a long distance away to hear the wisdom of Solomon (as recounted in 1 Kings 10), will condemn the men of Jesus' generation for not similarly recognizing the presence of One in their very midst who was greater and wiser than Solomon in every respect.
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