Islam teaches respect for the living and the dead, not only for humans but also for animals, as they are part of Allah’s creation. Although animals do not undergo the same rulings of funeral rites as humans, Islamic ethics call for honoring their remains, especially when the owner has affection and care for the animal.

1. General Principle: Burial is the Preferred Method
The default practice in Islam for disposing of dead bodies — human or animal — is burial in the earth, as it reflects:

Respect for the dignity of the deceased,

A natural return to the earth as part of Allah’s design, and

Avoidance of harm to the living.

In Sahih al-Bukhari, the Prophet ﷺ told of a woman who was punished for mistreating a cat, and of a prostitute who was forgiven for giving a dog water. This shows Islam values the dignity of animals, including in how they are treated after death.

Therefore, burial remains the most Islamically sound method for disposing of a deceased pet’s body.

2. Cremation: Disallowed for Humans and Disliked for Animals
Cremation is prohibited for human beings in Islam due to the violation of the sanctity of the body. While Islamic sources do not explicitly legislate cremation for animals, the analogy (qiyās) applies, especially if the animal was domesticated and cared for, as its remains deserve respectful treatment.

Thus, cremating pets is generally discouraged (makrūh) in Islam due to its destructive and undignified nature, unless there is a public health necessity.

3. Aquamation (Water Cremation): A Modern Issue
Aquamation, or alkaline hydrolysis, is a newer, fire-free process where the body is reduced to liquid and fine bone ash through heated water and alkaline solution. While it avoids fire, it still:

Reduces the body to residue, rather than preserving it for burial,

May result in biological remains being flushed or discarded in ways not aligned with Islamic sensibilities,

And leaves the bones as dust, akin to cremation.

Though it is not identical to flame cremation, it may fall under the same ruling, due to its functional similarity in reducing the body to ashes — and not returning it to the earth.

Hence, scholars and fatwa councils would cautiously advise against this method unless no burial option is available.

4. Keeping Bone Ashes at Home
Regarding the storage of the remains:

Islamic law prohibits the use of bones — particularly human — due to their sacred status.

In the case of animal bones, the issue is not ritual impurity, but the moral concern of preserving remains in a decorative or storage format.

Even if the ashes are not “used,” Islamic tradition discourages the retention of remains without necessity. The spirit of Islam encourages that what once had life be returned to the earth, not kept in containers indefinitely.

Conclusion:
The most appropriate Islamic method for handling a pet’s body after death is burial in the ground, in a dignified and respectful manner. While aquamation may seem less harsh than cremation, it serves the same functional result of reducing the body to ash, and therefore is not recommended under Islamic ethics. Likewise, retaining the ashes or bone dust in the home, even without using them, is discouraged due to the emphasis on returning the body to the earth.

If there is genuine concern about relocating and wanting to keep the pet’s memory, it is better to bury the animal in a way that allows for respectful relocation later — such as using a small casket or planting a tree above the burial site — rather than retaining remains in the home.