Question

Is Prophet Muhammad present everywhere and observe us?

Answer
The Prophet (peace and blessings be upon him and his family) is alive in his grave
Abu Hurairah (may Allah be pleased with him) narrated that the Prophet (peace and blessings be upon him and his family) said: "No one greets me except that Allah restores my soul so that I may return his greeting" [Recorded by Abu Dawud in his Sunan with a sound chain of transmission].

It is known that Muslims in every age send peace and blessings upon the Prophet (peace and blessings be upon him and his family) either in their prayers or at other times—a fact that requires the perpetual presence of his noble soul. The Prophet (peace and blessings be upon him and his family) is alive in his grave; he enjoys a greater awareness and leads a better life than that of this world. For this reason, he said: "My life is a blessing for you because you ask [about matters] and I give you their verdicts. And my death is likewise a blessing for you because your deeds will be presented to me [in my grave]; I will praise Allah for whatever good I see in them and ask Him for forgiveness for whatever evil I see in them" [Recorded by al-Bazzar and others with a good chain of transmission].

The above and other similar hadiths indicate that Allah empowers and strengthens His Prophet (peace and blessings be upon him and his family) with an awareness of the conditions of his community.
There are other Prophetic and non-Prophetic reports demonstrating that a deceased person is shown the conditions of his family; therefore, the Prophet is closer to the believers than their own selves and none can restrict the will of Allah Almighty.

Scholarly authorship on this issue:
• Jalal al-Deen As-Suyuti, the luminary and author of the book Al-Hawi Lil Fatawa, included a treatise in his book entitled Tanwir al-Halak Bi Imkan Ru`yat an-Nabiwa al-Malak in which he said: "It is possible to see the noble Prophet (peace and blessings be upon him and his family) in flesh and blood [after his death] because Allah revives him as well as all other Prophets and permits them to exit their graves to move freely in the realms of the earth and heavens."
• In his treatise, As-Suyuti quoted the opinions of other scholars who authored books on the same issue:
• Al-Baihaqi: He authored a treatise on the life of the Prophets. In his book Dala`il al-Nubuwa he said: "Like martyrs, Prophets are alive with their Lord after death." He said in Al-I'tiqad: "After their death, Prophets are revived and they are alive just like the martyrs."

• Abu Mansour Abd al-Qahir Ibn Tahir al-Baghdadi said: "The theologians in our time who verify certain religious issues have said that our Prophet is alive in his grave. He is given the glad tidings of the pious deeds of the people of his community, grieves at their sins and receives their prayers for him. The bodies of the Prophets in their graves are not subject to decay since Allah prohibited the earth to consume them. Our Prophet (peace and blessings be upon him and his family) has told us that he saw Prophet Musa (Moses) praying in his grave. The Prophet also mentioned that he saw Prophet Musa in the fourth heaven, as well as Adam and Ibrahim during his journey of Ascension. Through these narrations, we conclude that our Prophet (pbuh) remains alive in his grave and as a prophet."

• Al-Qurtubi said in Al-Tazkira: "Death does not mean absolute nonexistence but is a transmission from one state to another. This is substantiated by the fact that martyrs are alive and happy, receiving sustenance [from their Lord] which are the characteristics of living people. If this is the case with martyrs, then prophets deserve this with greater reason. It was authentically reported that Allah prohibited the earth to consume the bodies of Prophets in their graves; our Prophet met all the Prophets on the night of the Night Journey and Ascension [Isra' walMi'raj] in Al-Aqsa mosque as well as in the Heavens; he said that he saw Prophet Musa praying in his grave and that he [the Prophet in his grave] responds to anyone who sends him peace and the like. It is then evidently clear that Prophets remain alive after death. We cannot see or discern their presence just as we cannot see the angels who are invisible to humans except for those upon whom Allah bestows His favor. The Prophet (pbuh) is indeed alive in his grave, body and soul. He moves freely on earth and in the celestial world in the same form and shape he was in before his death—he did not change. He is invisible to [humans] just as the angles are invisible though they are physically alive. If Allah wants to honor any of his servants by making him see Prophet [Mohammed], He makes the Prophet visible to him in his same appearance."

• Burhan al-Deen al-Halabi, the author of Al-Sirah Al-Halabiy Insan al-'Uyun fi Sirat al-Nabi al-Ma`mun, authored a treatise entitled Ta'rif Ahl al-Islam wa al-Iman Bi Anna al-Nabi Salla Allahu Alaihi wa Sallam La Yakhlu Minhu Zaman wa la Makan. He concluded his treatise saying: "To conclude, The Prophet (peace and blessings be upon him) is present, in body and soul, after his death though we do not discern it."

It is worthy to mention that all this is subject to the infinite Might and power of Allah Most High.

Allah Almighty knows best.