"God's in His Heaven, All's Right With the World" is the last line from the poem Pippa's Song (from Pippa's Passes) which was written by Robert Browning.

Pippa's Song and this line in particular caused Browning many problems because a lot of people just heard the line and didn't consider it within the context it was written.

Pippa, in the poem, knew that everything wasn't all right with the world, she was an exploited orphan girl who had to work long hours in terrible conditions. When you look at the whole poem, it should be taken to mean that despite all the evil and injustice in the world, we can still believe that God is there, and thus all is right with the world.

As to whether I agree with Browning is another story...

It is also interesting to note that this line is used as part of NERV's Mark in Neon Genesis Evangelion.

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