What is Darood / Salawat ?
Allah sends His Salat (Graces, Honours, blessings, Mercy, etc.) on the Prophet (Muhammad SAW) and also His angels too (ask Allah to bless and forgive him). O you who believe! Send your Salat on (ask Allah to bless) him (Muhammad SAW), and (you should) greet (salute) him with the Islamic way of greeting (salutation i.e. AsSalamu Alaikum).
(سورة الأحزاب, Al-Ahzaab, Chapter #33, Verse #56)
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Al-Bukhari said: "Abu Al-`Aliyah said: "Allah's Salah is His praising him before the angels, and the Salah of the angels is their supplication.''
Ibn `Abbas said: "They send blessings.'' Abu `Isa At-Tirmidhi said: "This was narrated from Sufyan Ath-Thawri and other scholars, who said: `The Salah of the Lord is mercy, and the Salah of the angels is their seeking forgiveness.
There are Mutawatir Hadiths narrated from the Messenger of Allah commanding us to send blessings on him and how we should say Salah upon him.
We will mention as many of them as we can, if Allah wills, and Allah is the One Whose help we seek. In his Tafsir of this Ayah, Al-Bukhari recorded that Ka`b bin `Ujrah said, "It was said,
`O Messenger of Allah, with regard to sending Salam upon you, we know about this, but how about Salah'
He said:
«قُولُوا: اللَّهُمَّ صَلِّ عَلَى مُحَمَّدٍ وَعَلَى آلِ مُحَمَّدٍ، كَمَا صَلَّيْتَ عَلَى آلِ إِبْرَاهِيمَ ، إِنَّكَ حَمِيدٌ مَجِيدٌ، اللَّهُمَّ بَارِكْ عَلَى مُحَمَّدٍ وَعَلَى آلِ مُحَمَّدٍ، كَمَا بَارَكْتَ عَلَى آلِ إِبْرَاهِيمَ، إِنَّكَ حَمِيدٌ مَجِيد»
(Say: "O Allah, send Your Salah upon Muhammad and upon the family of Muhammad, as You sent Your Salah upon the family of Ibrahim, verily You are the Most Praiseworthy, Most Glorious. O Allah, send Your blessings upon Muhammad and upon the family of Muhammad, as You sent Your blessings upon the family of Ibrahim, verily You are Most Praiseworthy, Most Glorious.'')''
Imam Ahmad recorded that Ibn Abi Layla said that Ka`b bin `Ujrah met him and said, "Shall I not give you a gift The Messenger of Allah came out to us and we said, `O Messenger of Allah! We know how to send Salam upon you, but how can we send Salah'
He said:
«قُولُوا: اللَّهُمَّ صَلِّ عَلَى مُحَمَّدٍ وَعَلَى آلِ مُحَمَّدٍ، كَمَا صَلَّيْتَ عَلَى آلِ إِبْرَاهِيمَ ، إِنَّكَ حَمِيدٌ مَجِيدٌ، اللَّهُمَّ بَارِكْ عَلَى مُحَمَّدٍ وَعَلَى آلِ مُحَمَّدٍ، كَمَا بَارَكْتَ عَلَى آلِ إِبْرَاهِيمَ، إِنَّكَ حَمِيدٌ مَجِيد»
(Say: "O Allah, send Your Salah upon Muhammad and upon the family of Muhammad, as You sent Your Salah upon the family of Ibrahim, verily You are the Most Praiseworthy, Most Glorious. O Allah, send Your blessings upon Muhammad and upon the family of Muhammad, as You sent Your blessings upon the family of Ibrahim, verily You are Most Praiseworthy, Most Glorious.'')''
This Hadith has been recorded by the Group in their books with different chains of narration.
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http://www.qtafsir.com/index.php?option=com_content&task=view&id=1833&Itemid=89
Darood e Ibrahim : What we recite in daily salat .
In English :ALLAHUMMA SALLI ALA MUHAMMADIW WA ALA AALI MUHAMMADIN KAMAA SALLAITA ALA IBRAHIMA WA ALA AALI IBRAHIMA INNAKA HAMIDUM MAJID. ALLAHUMMA BAARIK ALA MUHAMMADIW WA ALA AALI MUHAMMADIN KAMAA BAARAKTA ALA IBRAHIMA WA ALA AALI IBRAHIMA INNAKA HAMIDUM MAJID.
Allahumma! Send blessings upon (Holy Prophet) Muhammad and upon the followers of (Holy Prophet) Muhammad as You sent blessings upon Ibraheem and upon the followers of Ibraheem; indeed, You are praiseworthy and glorious. Allahumma! Bless (Holy Prophet) Muhammad and the follower of (Holy Prophet) Muhammad as You blessed Ibraheem and the follower of Ibraheem; indeed, You are praise worthy and glorious.
Note :
The famous companion of the Prophet (Sallal Laahu Alaihi Wasallim), Hazrat Ka’ab bin Ujrah (radi Allahu anhu), narrates that once it was enquired from Sayyiduna Rasoolullah (Sallal Laahu Alaihi Wasallim) as to how blessings should be sent to him.
The Prophet (Sallal Laahu Alaihi Wasallim) replied that the blessings be said in the manner (it has been mentioned) above, that is, Durood-e-Ibrahimi.
https://islamgreatreligion.wordpress.com/2009/04/12/durood-e-ibrahim/