It is narrated from Sayyiduna Ibn Umar (may Allah be pleased with them) that the Messenger of Allah (peace and blessings be upon him) passed by a man who was advising his brother about modesty, saying, "Do not be too modest." The Prophet (peace and blessings be upon him) said: "Let him remain modest, for modesty is a part of faith."
In another chain, it is narrated from Sayyiduna Ibn Umar (may Allah be pleased with them) that the Prophet (peace and blessings be upon him) passed by a man who was scolding his brother about (excessive) modesty, to the extent that he said, "You will suffer loss because of it." The Prophet (peace and blessings be upon him) said: "Leave him to his state, for modesty is part of faith."
Hadith Referenceالادب المفرد / كتاب / 602
Hadith Gradingالألبانی:صحيح
Hadith Takhrij«صحيح : أخرجه البخاري ، كتاب الإيمان ، باب الحياء : 24 و مسلم : 36 و أبوداؤد : 4795 و الترمذي : 2615 و النسائي : 5033 و ابن ماجه : 58 - انظر المشكاة : 5070»
Explanation & Benefits
Shaykh Maulana Usman Muneeb
Benefits and Issues: If a person possesses an abundance of modesty (haya), and as a result suffers some loss, he should not be advised to abandon modesty. If he maintains his modesty, Allah Ta'ala will compensate for his loss. However, when it comes to inquiring about religious matters, fulfilling obligatory duties, or if there is a risk of harm to the religion, then modesty should not become an obstacle; rather, in such a case, the person is not truly modest but incapable.
Source: Fadlullah al-Ahad: Urdu Commentary on al-Adab al-Mufrad, Page: 602