Our Prophet (sallalahu alayhi wasallam) is alive in his grave, living the life of barzakh, where he is enjoying the ease and comfort which Allah has prepared for him as a fitting reward for that which he earned in the life of this world. But his soul is not returned to him as it was in this world or in the manner as it will be on the day of resurrection. Rather, it is the life of barzakh, which is in between the life of this world and the life of the hereafter. And everyone will go through these stages. Based upon this it is clear that the Messanger of Allah died, just as the prophets before him died. The only exception being Eesaa (alayhisallam), who was raised up to the heavens and will descend at the end of time, after which he will die.
Allah the Most High said:
“And we granted not immortality to any human being before you (O Muhammad). Then if you are to die, would they live forever?” (Al-Anbiya:34)
“whatsoever is on the earth will perish. And the face of your lord, full of Majesty and Honour will abide forever” (Ar-Rahman:26-27)
Allah also informed the messenger Muhammad in a clear verse of the Quran.
“verily you (O Muhammad) will die and verily, they too will die” (Az-Zumar:30)
And there are many other such examples among the verses which prove that Allah brought death to the prophet Muhammad (sallalahu alayhi wasallam). The companions washed his body and prayed over him and buried him. Had they considered him to be alive, as in the life of this world, they would have not have buried him in the ground!
And to seal the discussion, when Allah’s messenger died, his closest friend, companion and successor, Abu Bakr (May Allah be pleased with him) entered and kissed the messengers forehead and said, ‘May my mother and father be your ransom! You were good in life and in death.’ then he said, ‘he who worshipped Muhammad, then know that Muhammad has died. But he who worships Allah, then Allah is above the sky, he lives and does not die.’ (Authentically reported by Ad-Daarimee)
ISLAM NOTTINGHAM 