It is not permissible for Muslims to bury a dead Muslim in the graveyard of non-Muslims. In fact, it is the standard practice of all people of Islam since the lifetime of the Prophet (peace be upon him), the caliphates of Rightly-guided Caliphs and later generations. It is an unceasing practice that Muslims graveyards are singled out and distinguished from those of non-Muslims and that (Part No. 8; Page No. 453) Muslims are not buried with Mushriks (one who associates others with Allah in worship). Undoubtedly, it stands for a practical consensus of opinion on the necessity of distinguishing Muslim's graveyards from that of the non-Muslims.
on the authority of
Bashir ibn Ma`bad Al-Sadusy who said, "I walked with the Messenger of Allah (peace be upon him) and we passed by graves of Muslims. He (peace be upon him) said, "These missed great evil." Then, he passed by graves of non-Muslims and said, "Those missed great goodness."
This Hadith assures distinguishing Muslims and non-Muslims graves. However, no Muslim should live in a non-Muslim country or stay among disbelievers. A Muslim is required to move to an Islamic country wherein he saves his religion of trials, becomes able to reveal the rites of Islam and cooperates with his brothers on righteousness and piety. Moreover, he should live among Muslims to increase the number of Muslims. If a Muslim is living in a non-Muslim country with the aim of Da`wah (call) to Islam and he is well-qualified, is expected to have effect on others and would not be overcome by their suspicions, he is permitted to do so. The same is true for those who have to live in non-Muslim communities for they should cooperate with one another, help one another, and hold special graves for them to bury the dead Muslims in them. (Part No. 8; Page No. 454) May Allah grant us success. May peace and blessings be upon our Prophet Muhammad and his family and companions!