There reigned at that time in Judaea Herod, by decree of Caesar Augustus, and Pilate was governor in the priesthood of Annas and Caiaphas. Wherefore, by decree of Augustus, all the world was enrolled; wherefore each one went to his own country, and they presented themselves by their own tribes to be enrolled. Joseph accordingly departed from Nazareth, a city of Galilee, with Mary his wife, great with child, to go to Bethlehem (for that it was his city, he being of the lineage of David), in order that he might be enrolled according to the decree of Caesar. Joseph having arrived at Bethlehem, for that the city was small, and great the multitude of them that were strangers there, he found no place, wherefore he took lodging outside the city in lodging made for a shepherds’ shelter.
While Joseph abode there the days were fulfilled for Mary to bring forth. The virgin was surrounded by a light exceeding bright and brought forth her son without pain, whom she took in her arms, and wrapping him in swaddling clothes, laid him in the manger because there was no room in the inn. There came with gladness a great multitude of angels to the inn, blessing God and announcing peace to them that fear God. Mary and Joseph praised the Lord for the birth of Jesus, and with the greatest joy nurtured him.
An Islamic Perspective
Please see the commentary on Chapter 2 about Joseph.