Narrated Ali ibn Abu Talib: Do not be extravagant in shrouding, for I heard the Messenger of Allah ﷺ say: Do not be extravagant in shrouding, for it will be quickly decayed.
Related hadith on this topic
Explanation & Benefits
Shaykh Umar Farooq Saeedi
Benefits and Issues:
The narration is weak.
In any case, making the shroud (kafan) expensive is indeed impermissible.
Moreover, it also involves extravagance of wealth.
Source: Sunan Abu Dawood – Commentary by Shaykh Umar Farooq Saeedi, Page: 3154
Shaykh Safi ur-Rahman Mubarakpuri
Lexical Explanation:
If derived from «لَا تُغَالُوا» «مغالاة», both “ta” and “lam” will be included in the meaning, or it is from «تَغَالِي», in which case one “ta” will be omitted, and both “ta” and “lam” will have a fatha (zabar) on them. By this is meant extravagance and excess in price.
«يُسْلَبُ» is a passive verb form. “Becoming worn out” is a metaphor. In the hadith of Jabir radi Allahu anhu regarding the command to give a good shroud, what is meant is that it should be white, clean, spacious, and covering. It should be of moderate price, not very inferior or defective. This does not mean extravagance or wastefulness.
Benefit:
There is no need for a very expensive shroud for the deceased, because sooner or later it will become worn out. This narration is weak in its chain, but the statement of Abu Bakr radi Allahu anhu at the time of his death supports it, that “Wash my sheets and shroud me in them, for a living person is more deserving of new clothes than a deceased one.” [صحيح البخاري، الجنائز، باب موت يوم الائنين، حديث : 1387]
Source: Bulugh al-Maram: Commentary by Safiur Rahman Mubarakpuri, Page: 442