Muslim

Hadith Commentary:
Benefits and Issues:
Some individuals, following the example of the Companion of the Messenger (radi Allahu anhu), have taken this hadith in its apparent literal meaning—that is, that the faces of professional flatterers and eulogists should actually be covered with dust.
However, according to most of the Salaf, this is a figurative expression for rendering such a person unsuccessful and disappointed; that is, he should not be encouraged, and his objective and purpose should not be fulfilled.
The one being praised should not fall into pride, arrogance, or self-conceit, nor should the words of the flatterer be given importance or weight.
If he is doing this in order to gain something,
then he should be deprived of it.

Benefits and Issues:
This condemnation and this matter appear to pertain to those people whose habit it is to flatter and excessively praise influential individuals in order to gain wealth and fulfill their own interests. However, if someone is praised within appropriate limits for their good deeds, for the purpose of encouragement and motivation, then, insha Allah, it is permissible. In any case, Hazrat Miqdad radi Allahu anhu would take the apparent meaning of the statement of the Messenger ﷺ.
Which is, without doubt, the truth and reality.

Benefits and Issues:

➊
The purpose of those who praise others to their faces is generally to offer exaggerated and unlawful praise and flattery in order to obtain financial benefit from their praised individuals in an illegitimate manner or to gain a high status in their eyes.
This act is morally wrong.

➋
The meaning of “throwing dust on their faces” is quite clear: that dust should be thrown on the face of the person who is praising, just as the narrator of the hadith, the Companion of the Messenger, Miqdad bin Amr (radi Allahu anhu), threw dust on the face of a person who praised the ruler to his face. Then, upon being asked, he said that the Messenger of Allah (sallallahu alayhi wa sallam) commanded us to throw dust on the faces of those who flatter. (Sahih Muslim, Kitab al-Zuhd, Chapter: The Prohibition of Excessive Praise..., Hadith: 3002)
It should be remembered that the prohibited praise referred to here is that which is unlawful, based on flattery, and exaggerated, as well as such praise that poses a risk of the praised person falling into conceit, self-admiration, or showing off.
However, if a person is truly worthy of praise and there is no risk of him falling into any kind of trial or fitnah upon hearing his praise, nor is the intention of the one praising to obtain unlawful benefits, then such praise is permissible, just as the Messenger of Allah (sallallahu alayhi wa sallam) himself praised some of his Companions (radi Allahu anhum) in their presence.
And Allah knows best.

➌
Due to exaggerated praise, there is a risk that pride and arrogance may develop in the heart of the praised person, and it is quite possible that because of this praise and fame, he may become lazy in his actions or, tasting the pleasure of praise, fall into showing off (riya’), and this leads to destruction.