By default JBoss AS 5 is the most recent, supported version of JBoss AS in Eclipse IDE. You need an Eclipse server adapter for JBoss AS 7 and that’s what JBoss Tools tooling provides.
Installing JBoss Tools 3.3.0.M2
JBoss Tools 3.3.0.M2’s installation is a simple affair and boils down to a few clicks in the Help > Install New Software… wizard.
According to JBoss Tools 3.3.0.M2 Development Release page, you should use http://download.jboss.org/jbosstools/updates/development/indigo/ for the latest development release of the Core tools.
Select Web and Java EE Development category which includes JBossAS Tools and the required adapter (although the Details section below may have implied that it would not).
Once JBoss Tools is installed, you will see JBoss AS 7.0 server available in the Servers view.
Registering JBoss AS 7 server
Eclipse IDE has to know about the server location and other configuration settings. You use the Servers view of Eclipse to configure one.
Use an appropriate value for Home Directory where JBoss AS 7 CR1 resides.
The final result is as depicted on the screenshot.
You can manage the server instance easily. Start and stop it to ensure its proper working.
Source: http://www.jaceklaskowski.pl/wiki/OSGi_Development_with_Eclipse_IDE_and_JBoss_AS_7
Kousik Rajendran 
Thanks a lot, It helped me a lot but does it have any condition that in latest versions of eclipse only it works. Because I tried in indigo and it worked fine but when I tried in helios version of eclipse its say it occured some problem and stoped. Can you provide some more information about this.
got it. Thanks
amazing stuff thanx
As Divya asked, is there any eta on a Helios version of this being released?
Chris,
Here is your link, seems INDIGO links works for Helios itself. Check out here: http://stackoverflow.com/questions/6802754/how-to-run-jboss-as-7-with-eclipse-3-6helios
Gracias!!!!
Can you please provide me some help with how Jboss4.2.3 can be integrated with helios?Wen i try to add the above url to the ‘install new software ‘ tab it is giving exceptions..Any other way to configure..?
Hi Indu,
Try this URL https://community.jboss.org/en/tools/blog/2010/07/05/jboss-tools-on-eclipse-36-helios . It should work.
Hi
I followed your step
But after installation, in the eclipse, it shows me the following
The home directory does not exist or is missing a required file or folder: modules\org\jboss\as\server\main
Do i need to install anything before this option ?
Here is the explanation for your issue, try this https://issues.jboss.org/browse/JBIDE-9724
Thanks,its helped a lot.
If you don’t have JAVA_HOME variable setup in your eclipse, you can’t start your jboss server. go to Windows –> preferences –> Run/Debug –> String Substitution and create a new string substituition variable called JAVA_HOME where the value is the value of your JAVA_HOME environment variable.