The focus of this article is Jerusalem and its status in Islam through the verses of the Qur'a¯ n (the holiest text in Islam), hadi¯th literature, and early Islamic history. The importance of this study is two-fold. First, it deals with all the Qur'a¯ nic verses which include either unambiguous references to Jerusalem and al-Masjid al-Aqsa¯ (the Furthest Mosque), or those that imply ambiguous but likely references to the same, or else those that imply ambiguous but unlikely references. Second, it shows why Jerusalem is so intrinsically important to Muslim beliefs and mentality. Therefore, it tries to help readers at large to understand the Muslim attitude in relation to this city. This article is divided into an introduction, four major sections and a conclusion. In the Introduction, the article tries to explain the status of Jerusalem in Islam and why it is regarded as holy by the one billion Muslims now living on earth. The first section illustrates the merits of Jerusalem in Islam through the Qur'a¯ n, hadi¯th literature, and early Islamic history. It also discusses the construction and the purposes behind building the Dome of the Rock. The second section illustrates and discusses the Qur'a¯ nic verses which imply unambiguous reference to Jerusalem. The third section deals with the verses which imply ambiguous, but likely, references to the same. The fourth section deals with the verses that imply ambiguous, but unlikely, references. It was found that there are about 70 places in the Qur'a¯ n which fall into these two last categories. These places are scattered through 21 s u¯ ras . In order to discover and explain the verses related to Jerusalem, I have relied on various sources of exegeses, hadi¯th , history and geography. Further, contrary opinions about the interpretation of any verse have been addressed and a sort of balance between them has been provided. Finally, in the conclusion, the writer of this article expresses a desire for justice without which a comprehensive peace cannot be established in this holy city, so that all the followers of the three religions, Judaism, Christianity and Islam, will have their rights equally.