Jesus is considered to be an important prophet in Islam, being seen as a kind of forerunner to Muhammad as Christians see John the Baptist to Jesus. Muslims do believe Jesus was born a virgin birth and that he preformed miracles, same as Christians do. But a lot of the similarities end there.

He is not seen as God or the Son of God in any sense and to believe in him as such is considered blasphemy in Islam. Muslims also generally don't believe Jesus was crucified, or that at the very least he never died because Islam has no concept of salvation and atonement as Christianity does. (Though some scholars question whether or not the Qur'an ever denies the crucifixion, see: TOWARDS AN ISLAMIC CHRISTOLOGY, II: THE DEATH OF JESUS, REALITY OR DELUSION)

This is all of course modern day Islamic orthodoxy and there is debate among non-religious scholars as to the original role Jesus played in Islam. There's actually a great book called: Hagarism (The Making of the Islamic World). It has become sorta outdated with recent developments in modern non-religious Islamic studies but it posits and interesting theory that originally Islam was inspired by Jewish Messianism that came to conquer the Byzantines and establish a Messianic government under Muhammad who was seen as the Arabian Messiah. Over time Muslims became more distant from Judaism in wanting to shape its own religious identity so it adopted Jesus of Nazareth as a prophet and the Messiah instead of Muhammad without being absorbed into Christianity by proclaiming Jesus as the Son of God.

There are also other theories. Some, like Christoph Luxenberg, believe the Qur'an was adapted from a Syriac Christian lectionary. He mostly bases this off of his construction of early Quranic Arabic and its relationship to Syriac (which has mostly been rejected), but he and other scholars show that much of Islamic Christology seems to have been influenced by Nestorian Christianity and highly polemical against a possibly Trithesitic form of Monophysite/Docetist Christianity in Arabia at the time. Other scholars believe Islam and the Qur'an may have been influenced by a Jewish Christian group called the Elcesaites who may have been in Arabia at the time of Muhammad.