17] And he beheld them, and said, What is this then that is written, The stone which the builders rejected, the same is become the head of the corner? [18] Whosoever shall fall upon that stone shall be broken; but on whomsoever it shall fall, it will grind him to powder. [19] And the chief priests and the scribes the same hour sought to lay hands on him; and they feared the people: for they perceived that he had spoken this parable against them.

After presenting the parable of the vineyard to the chief priests and scribes, now Jesus presents another parable, the parable of the rejected stone, to them. The parable of the vineyard clearly told how the “heir and son” of the Lord of the vineyard would be killed or rejected by the leaders. Now, a second time, Jesus again tries to show the leaders what they are doing.
In Isaiah 28:14-16 the prophet had said wherefore hear the word of the Lord ye scornful men, that rule this people which is in Jerusalem because ye have said, we have made a covenant with death, and with hell are at agreement; . . . we have made lies our refuge, and under falsehood have we his ourselves. Therefore, thus saith the Lord God, behold I lay in Zion for a foundation a stone, a tried stone, a precious corner stone, a sure foundation: he that believeth shall not make haste.
The Scribes and Pharisees were aware of this prophecy and when Jesus spoke the parable of the cornerstone being rejected by the builders, they knew he was talking about them rejecting Him. Later, after they had rejected and killed Jesus, the apostle peter once again reminded the leaders of what they had done.
Acts 4:10-12 Be it known unto you all, and to all the people of Israel, that by the name of Jesus Christ of Nazareth, whom ye crucified, whom God raised from the dead, even by him doth this man stand here before you whole. This is the stone which was set at nought of you builders, which is become the head of the corner. Neither is there salvation in any other: for there is none other name under heaven given among men, whereby we must be saved. Peter clearly identified the leaders as “the builders” who had rejected the “stone,” Jesus.
In this parable, Jesus used the physical construction of the temple to represent the spiritual construction of the church. Just as a building is made up of physical stones and the important cornerstone, so the church is made up of spiritual stones or people and the most important spiritual cornerstone, Jesus. The apostle Peter put it this way in I Peter 2:3-6 If so be ye have tasted that the Lord is gracious. To whom coming, as unto a living stone, disallowed indeed of men, but chosen of God, and precious, Ye also, as lively stones, are built up a spiritual house, an holy priesthood, to offer up spiritual sacrifices, acceptable to God by Jesus Christ. Wherefore also it is contained in the scripture, Behold, I lay in Sion a chief corner stone, elect, precious: and he that believeth on him shall not be confounded.