2) Should we celebrate mawlid? Is it not an innovation?
JazakAllah
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Answer: 1) The first question has been answered before on this website. See Q497.
http://www.tafseer-raheemi.com/q497-is-saying-ya-nabi-salam-alayka-allowed/

2) ‘Celebrating Mawlid’ is a general term. What type of celebration are you enquiring about?

The one that is widespread in our Asian culture in this day and age, has many innovations in it. Many Khuraafaat are included in there, e.g. free mixing, music, qawwali, wasting time, abandoning salah, burdening the poor beyond their limits, and in some places re-enacting the birth, etc. If Rasulullah Sallallahu alayhi qowasallam was with us today, he would have stopped us from doing such things.

Where there is nothing contrary to the shariah, ie. some people get together and one of them explains the magnificence of Rasulullah Sallallahu alayhi wa sallam, and relates the miraculous events that occurred at the time of his blessed birth, and talks about his seerate tayyibah, then there should be no harm in there, because this is to increase the love of Rasulullah Sallallahu alayhi wasallam in our hearts. And this love is the essence of our deen Islam, our iman is classed as incomplete when any deficiency creeps in this love.

In this day and age we see that people have drifted away from the deen and this love has diminished. The special bond and connection which the ummah had with Rasulullah Sallallahu alayhi wasallam is nowhere to be seen.

We study our salafe saliheen and see that they had so much love for Rasulullah Sallallahu alayhi wasallam that when he would be mentioned, tears would start flowing from their eyes. They would often use phrases like ‘may my mother and father be ransomed for him’ They would prefer him over their own lives, properties, children, family and the whole world put together.

Therefore, to achieve an iota of that ishqe Rasul, the least we could do is hold seerat jalsas in his remembrance, encourage people to read lots of durood shareef, and to follow in his footsteps. In fact we should invite non Muslims to such gatherings too and make them aware of how dearly we hold our beloved Prophet Sallallahu alayhi wasallam, perhaps they could begin to love him too.

Remember that for something to be allowed, it doesn’t have to be directly in the Quran and Hadith, it merely has to be in confirmation with the guidelines given by Allah and his Rasul, and in confirmation with the understanding of our salafe saliheen. Salafe saliheen may not have held such gatherings, however, they did not need them, they held Rasulullah sallallhu alayhi wasallam in high esteem and would always keep him in their minds. Also they did not face the fitnas that we are facing today. Allah knows best.

May Allah bless us with the correct understanding of our deen, and may He inspire us with the true love of His beloved Sallallahu alayhi wasallam. Ameen ya rabbal aalameen bi hurmati sayyidil mursaleen salawatullahi wa salamuhu alayhi wa ala aalihi wa ashaabihi ajmaeen ila yawmiddeen.