Wa 'alaykum Salaam,
'Praise' in what sense; someone praising you or you praising someone else ?
It is permissible to praise someone in their presence and in their absence. However, in the situation where one is praising a person in his presence, he should not excessively praise him as that may be a means of him becoming vain and proud.
It is narrated on the authority of Miqdaad ibn al-Aswad that Rasulullah [sallallaahu alayhi wasallam] said, ‘When you are faced with those people who praise you excessively, then throw sand onto their faces.’ This Hadith refers to those who excessively praise a person or those who praise in order to gain something.
I've been told that we can only praise someone if we know that the other person won't riya' or anything like it.
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