We believe that he was raised to heaven and is there, and will descend at the appointed time, end all wars, and bring peace to the world.  Like Jesus (A.S.), Muhammad (Peace be upon him) is also a Prophet and Messenger. Muhammed (P.B.U.H.) is the last Prophet, though, and there is none after him. 

Hence, Islam is the last religion, complete,  with the Holy Qur'an as the unchanged and perfect word of God for over 1400 years, as God promised to preserve it till the last day for all of humankind, unlike sacred texts of other religions which have mulitple versions and are "revised" periodically.  God, or Allah in Arabic, is Divine and Supreme Being and Creator.

What the Holy Qur'an says about Jesus:

  They slew him not, nor did they crucify him but it was made dubious to them.
(Holy Qur'an, Surah Nisaa, Verse 157)

Hadhrat Isa (A.S.) himself told of the coming of Prophet Muhammad (Peace be upon him). In the Bible, Jesus (A.S.) says,

  If you love me, Keep my commandments. And I will pray to the Father and He shall give you another comforter that he may abide with you forever.
(Bible, John 14-15/16)  

But when the comforter is come, whom I will send unto you from the Father, even the spirit of Truth, which proceedeth from the Father, he shall testify of me, and he also shall bear witness, because ye have been with me from the beginning.
(Bible, John 15-26/27) 

I have yet many things to say unto you, but you cannot bear them now. How be it when he, the spirit of Truth will come, he will guide you into all truth, for he shall speak not of himself, but whatsoever he shall hear, that he shall speak, and he will show you things to come. He shall glorify me, for he shall receive of mine, and he shall show it unto you.
(Bible, John 16-12/14)

Ulema (learned scholars in Islam) have said that the person who is described by Hadhrat Isa (A.S.) to come after him - in the above verse - does not comply with any other person but Prophet Muhammad (Peace be upon him).

In this case, the "comforter" he mentions is none other than Prophet Muhammad (Peace be upon him) and his laws and way of life (Shariah) and Book (Holy Qur'an) are those that Hadhrat Isa (A.S.) asks his followers to abide by.

 The "person" whom Jesus (A.S.) prophecised will come after him, is called Pargaleeta in the Bible . This word was deleted by interpreters and translators and changed at times to "Spirit of Truth" and at other times, to "comforter" and sometimes "Holy Spirit." The original Greek and its meaning is "one whom people praise exceedingly." The sense of the word, then, is applicable to the word Muhammad in Arabic, since Muhammad means "the praised one."

 Jesus (A.S.) also says in the Bible,

  ... and a little while and you shall not see me; and again a little while, you shall see me because I go to the Father.
(Bible, John 16:16)

... and the Holy Qur'an says,

  And surely they slew him not. But Allah (God) raised him unto Himself.
(Holy Qur'an, Surah Nisaa, Verse 157-158)

As such, Muslims believe that Hadhrat Isa (A.S.) was raised to heaven. According to Hadith, he is on the second heaven. Rasulullah (Sallallaahu Alayhi Wasallam=Peace be upon him) mentioned, "During the Meraj (Ascension), I met Hadhrat Isa (A.S.) on the second heaven. I found him of medium stature, reddish white.

His body was so clean and clear, that it appeared as though he had just performed ghusal (ablution, cleansing of the entire body) and come." In another Hadith, Rasulullah (Sallallahu Alayhi Wasallam) mentioned to the Jews that, " Hadhrat Isa (A.S.) is not dead, he will most surely return to you before Qiyamat (the Day of Judgement)."

May Allah Guide all people to the Truth. Aameen.

(For more information about Jesus A.S. in Islam, Click Here) 

II. Hadhrat Isa's (A.S.) Descension   The Physical Features of Hadhrat Isa (A.S.)

He will resemble the famous Sahabi (A.S.) Hadhrat Urwa bin Masoodi (R.A.). He will be of average height and red and white in colour. His hair spread to the shoulders, straight, neat and shining as after a bath. On bending his head, it will seem as if pearls are falling. He will have an armour on his body. He will be wearing two pieces of cloth light yellow in color.

 His Descension

He will descend on a Jamaat (group) that will be righteous at the time and comprising of 800 men and 400 women. The people will be preparing for war at the time against Dajjal (the anti-Christ). It will be time for Fajr prayers, and Imam Mahdi will be the Amir (leader).

From the darkness of the dawn, a sound will suddenly be heard that "one who listens to your pleas has come" -- the righteous people will look everywhere and their eyes will fall on Isa (A.S.). Briefly, at the time of Fajr, Isa (A.S.) will descend.

When descending, Isa (A.S.)'s hands will be on the shoulders of two angels (according to another source (Kab Abrar), a cloud will carry him). On their insistence Hadhrat Isa will introduce himself. He will inquire about their enthusiasm and thoughts on Jihad against Dajjal.

Hadhrat Isa (A.S.) will descend on the eastern side near the Minaret in Damascus (or in Baitul-Muqaddus by Imam Mahdi). At the time Imam Mahdi will have proceeded forward to lead the Fajr Salaat. The Iqamat of the Salaat would have been said (already recited) and Imam Mahdi will call Hadhrat Isa (A.S.) for Imamat (to lead the prayer), but he (Hadhrat Isa (A.S.)) will instead tell Imam Mahdi to lead the prayer since the Iqamat of that Salaat has already been said for him.

Thus Imam Mahdi will lead the prayer, and Hadhrat Isa (A.S.) will follow him. After the ruku, he will make this statement: "Allah has killed Dajjal and the Muslims have appeared."

 The Killing of Dajjal (anti-Christ) and the Victory of the Muslims

 After the completion of Fajr Salaat (congregational dawn prayers), Hadhrat Isa (A.S.) will open the door behind him where Dajjal accompanied by 70,000 Yahudis (Jews) will be. He will indicate with his hand to move away between him (Hadhrat Isa (A.S.)) and Dajjal. Dajjal will then see Hadhrat Isa (A.S.).

At that time every Kafir on whom the breath of Hadhrat Isa (A.S.) will reach, will die. His breath will reach up to the distance of his eyesight. The Muslims will then come down from the mountains and break loose on the army of Dajjal. There will be war, Dajjal will retreat, and Hadhrat Isa (A.S.) will pursue Dajjal. Hadhrat Isa (A.S.) will have two flexible swords and one shield with him and with these he will kill Dajjal at the Gate of Hudd.

He willl show the Muslims the blood of Dajjal which will get on his shield. Eventually the Yahudis will be selected and killed. The swine will be killed and the cross broken. People will revert to Islam. Wars will end, and people will return to their respective countries. One Jamaat (group) of Muslims will remain in his service and companionship.

 Hadhrat Isa (A.S.) will go to Fajr Rawha and perform Haj or Umrah (or both) from there. He will also go to the grave of Rasulullah (Sallallahu Alayhi Wasallam) and present his greetings and Rasulullah (Sallallahu Alayhi Wasallam) will reply. People will live comfortable lives. The wall of Yajooj and Majooj (Gog and Magog) will then break.

III. The Blessings of Hadhrat Isa (Jesus) (A.S.)

 1 Hadhrat Isa (A.S.) will descend and stay on earth.
2 His descension will be in the last era of the Ummat.
3 He will be a just ruler and a fair judge.
4 His ummat will be the Khalifa (deputies) of Rasulullah (Sallallahu Alayhi Wasallam).
5 He will act himself and instruct others on the Qur'an and Hadith (Shariat/Tradition of Islam).
6 He will lead people in Salaat (Prayer).
7 He will stay on earth for a period of 40 years after descending. The will be the best era of the Ummat after the first era of Islam.
8 Allah will protect his companions from Jahannam.
9 Those who will save the Deen of Islam by associating themselves with Hadhrat Isa (A.S.) will be amongst the most loved by Allah Ta'ala.
10 During this period all other religions and mazhabs besides Islam will perish, hence there will be no kuffaars (non-believers) in the world.
11 Jihad will be stopped.
12 No Khiraaj will be taken.
13 Nor Jizya (protection tax) money from the kafirs (non-believers)
14 Wealth and property will be in surplus to such an extent that there will be no one to accept the wealth of the other (everyone will be independent).
15 Receiving Zakaat (Alms-giving, Charity to poor) and Saadaqa will be discarded (as there will be no poor to receive them!).
16 The people will love the sajda (prostration to God) more than the world and what it consists of.
17 All types of Deeni (religious) and worldly blessings will descend on earth (many halaal (lawful) things will be created).
18 There will be peace, harmony and tranquility during the time of Hadhrat Isa (A.S.)'s stay in the world.
19 There will be no animosity for a period of seven years, even between two persons.
20 All hearts will be free from miserliness, envy, hatred, malice and jealousy.
21 For a period of forty years no one will fall ill or die.
22 Venom will be taken out of all venomous animals.
23 Snakes and scorpions will not harm anyone to the extent that if a child put his hand in its mouth, he will not be harmed.
24 Will animals will not harm anyone.
25 If a man will pass a lion, he will not be troubled or harmed, or even if any girl will open its mouth to test if it will do anything.
26 The camels will graze among lions, cheetahs with cattle and the jackals with goats.
27 The fertility of the land will increase to such an extent that even if a seed is planted in a hard rock, it will sprout.
28 A pomegranate will be so huge that a jamaat will be able to eat it and the people will use its peel as shade.
29 There will be so much barakaat (blessing) in milk that a camel will suffice for a huge jamaat, a cow for a tribe and a goat for a family.
30 In short, life will be most pleasant after the descension of Jesus (A.S.).

His Marriage, Death and Deputies

After his descension on earth, Hadhrat Isa (A.S.) will marry. He will have children, and he will remain on earth 19 years after marriage. He will pass away and Muslims will perform his Janaza Salaat and bury him net to Rasulullah (Sallallahu Alayhi Wasallam). (Tirmidhi)