He restores my soul: this line is literally “He causes my nefesh to return” (for nefesh see comment at 3.2). The meaning is to restore vitality, vigor, strength; to renew, invigorate. This statement seems to express the result of Yahweh’s care, as described in verse 2. Die Bibel im heutigen Deutsch, in fact, makes this line a continuation of the sentence in the previous verse, “… and (you) give me new strength.”
He restores my soul must sometimes be rendered in idiomatic terms; for example, “he puts a new heart in me” or “he makes my liver like new.”
The phrase paths of righteousness has been variously understood. Anderson proposes “paths which lead to happiness”; New Jerusalem Bible (like Good News Translation) has “right paths”; Biblia Dios Habla Hoy “straight paths”; Bible en français courant “the good (or, pleasant) way.” If the figure of a shepherd leading his sheep is still uppermost in the psalmist’s mind, the meaning must be that the paths are those which avoid dangerous places and which lead to abundant pastures, where the sheep may graze in safety and tranquillity.
For his name’s sake: the phrase “on account of his name” occurs also in 25.11; 31.3; 79.9; 106.8; 109.21; 143.11. It means in the first instance “for the sake of his reputation” (see Anderson); New Jerusalem Bible, New Jerusalem Bible, and Anchor Bible translate “as befits his name”; Biblia Dios Habla Hoy, somewhat differently, “bringing honor to his name.” Good News Translation has taken “name” here to stand for Yahweh’s reputation as one who keeps his promises (see discussion of “name” at 5.11); see Toombs: “because that is the kind of God he is”; Bible en français courant “because he is the shepherd of Israel.” And Taylor comments: “the good shepherd will not be false to himself.”
The expression for his name’s sake, if it is to have any meaning, requires some recasting, as in Good News Translation. In the first place there must often be some connection between being led in “the good paths” and “his name’s sake.” This may be a relation of reason and result. One may sometimes say “he leads me along straight paths because he is that kind of LORD.” In terms of reputation it is possible to render lines b and c as “he leads me on straight paths because that is what he is known for” or “because he is the shepherd of his people, he leads me along straight paths.”
Quoted with permission from Bratcher, Robert G. and Reyburn, William D. A Handbook on the Book of Psalms. (UBS Helps for Translators). New York: UBS, 1991. For this and other handbooks for translators see here .