Revelation 20:4-6 And I saw thrones, and they sat upon them, and judgment was given unto them: and I saw the souls of them that were beheaded for the witness of Jesus, and for the word of God, and which had not worshipped the beast, neither his image, neither had received his mark upon their foreheads, or in their hands; and they lived and reigned with Christ a thousand years. But the rest of the dead lived not again until the thousand years were finished. This is the first resurrection. Blessed and holy is he that hath part in the first resurrection: on such the second death hath no power, but they shall be priests of God and of Christ, and shall reign with him a thousand years.
"In connection with this ‘thousand year reign’ of verses 4-6 we shall answer three questions.
First, where does it take place? According to the passage which we are considering it takes place in three places.
(i) The thousand year reign occurs where the thrones are, for we read: ‘And I saw thrones and they sat upon them.' ...
(ii) The thousand year reign also occurs where the disembodied souls of the martyrs are, for we read: ‘And I saw the souls of them that had been beheaded for the testimony of Jesus. ’ John sees souls, not bodies. ... The souls reign during this entire present dispensation until Christ’s second coming. Afterwards, it is no longer the souls that reign, for then body and soul are together again. Then the saints reign, not for a limited though lengthy period—a thousand years—but ‘for ever and ever’ (22: 5).
(iii) The thousand year reign also occurs where Jesus lives, for we read ‘And they lived and reigned with Christ.... ’ The question is, where, according to the Apocalypse, is the place from which the exalted Mediator rules the universe? Where does Jesus live? Clearly, it is in heaven. ...
The next question that has to be answered is, what is its character? The nature of this reign may be summarized in four ways as follows.
(i) It is judging with Christ. The ransomed souls in heaven praise Christ for His righteous judgments. They constantly sing: ‘True and righteous are his judgments.' ...
(ii) It is living with Christ: ‘they did live and did reign’ (see Rev. 7: 9 ff). In heaven these souls respond in a perfect manner to a perfect environment. And what is life but that?
(iii) It is a sharing of royal glory with Christ. These souls celebrate the Lamb’s, and thus their own, victory. ...
(iv) It is ‘the first resurrection’. The first resurrection is the translation of the soul from this sinful earth to God’s holy heaven. It is followed at Christ’s second coming by the second resurrection when the body, too, will be glorified.
Our final question is, who participates in this reign? The answer is simple and easy. First of all, all the souls of the martyrs, ‘those who had been beheaded for the testimony of Jesus’. Secondly, all other believers who died in their faith, ‘such as worshipped not the beast’, etc. The rest of the dead, that is, all other men who died, the unbelieving dead, lived not until the thousand years are finished. When that period is finished, then there is a change. Then they enter ‘the second death’. In other words, they receive everlasting punishment: not only as for the soul but now also for the body. The change is not for better but for the worse. On the other hand, those who have part in the first resurrection are blessed and holy. Over them the second death has no power. Not only shall they reign with Christ, but they shall also worship God in Christ as priests throughout the thousand years (Rev. 1:6; 5:10)."
- from William Hendriksen's More Than Conquerors