The classical commentators, along with most modern scholars, understand the word “shena” as though it ended with a ‘heh’ instead of an ‘alef’ – in other words, “sleep."  This interpretation serves to link this phrase with the preceding stanza, which spoke about people who arise early in the morning and settle to sleep late, all because of their work.  Thus the verse depicts a contrasting picture of God granting to “His beloved” the “sleep” that they need. However, these commentators introduce new difficulties – ideological and exegetical ones - into understanding the verse and the psalm.

Courtesy of the Virtual Beit Midrash, Yeshivat Har Etzion