The Dome of the Rock is an Islamic sacred shrine in Jerusalem, built on the

Temple Mount. It is believed this is where Muhammad ascended into heaven

and was given the second pillar of Islam, to pray five times a day, from Allah,
which is still used today.
For Muslims, Jerusalem was the first Qibla - the place toward which they turn
in prayer. It was many years into the Islamic mission, that Muhammad (pbuh)
was instructed to change the Qibla from Jerusalem to Mecca. It is reported
that the Prophet Muhammad said, "There are only three mosques to which
you should embark on a journey: the sacred mosque (Mecca), this mosque of
mine (Madinah), and the mosque of Al-Aqsa (Jerusalem)."
So, this is why Jerusalem is one of the three holiest places on earth for
Muslims.
It is Jerusalem that Muhammad (pbuh) visited during his night journey and
ascension, called Isra' and Mi'raj. In one evening, it is believed that the angel
Gabriel miraculously took the Prophet from the Sacred Mosque in Mecca to
the Furthest Mosque (Al-Aqsa) in Jerusalem.
He was then taken up to the heavens to be shown the signs of God. After the
Prophet met with earlier prophets and led them in prayer, he was then taken
back to Mecca. The whole experience, which most Muslims believe as a
miracle, lasted a few hours. The event of Isra' and Mi'raj is mentioned in the
Quran named "The Children of Israel."