Is there a place reserved for Jesus (as) beside the grave of the Holy Prophet Muhammad (saw) in Medina?

No, not in that sense. The idea rests on a tradition that speaks of burial in the very grave of the Holy Prophet Muhammad (saw), and this is meant figuratively: the coming Messiah is so close to him that his end is like the end of the Holy Prophet (saw) himself.

In the burial chamber in Medina lies the Holy Prophet Muhammad (saw), and beside him two of his closest companions. Some point to an empty space in the chamber and say it is reserved for Jesus (as), for when he returns and dies.

This idea goes back to a tradition about the coming Messiah. But it does not say that he would be buried beside the Holy Prophet (saw). It says he would be buried with him, that is, in his own grave. Taken literally this makes no sense, because no one would open the grave of the Holy Prophet (saw) to lay someone else in it. Because this meaning seemed impossible, people reinterpreted it as “beside”.

The tradition is meant figuratively. In everyday language too, we say of two people who are closely bound together that they share one and the same fate. What is meant is a deep unity. The coming Messiah is so closely linked to the Holy Prophet (saw) that his end is like the end of the Holy Prophet (saw) himself.

This also carries a warning. Whoever mocks the coming Messiah over the manner of his death, or spreads lies about it, is attacking the Holy Prophet (saw) himself. One should therefore think carefully before doing such a thing.

The verse above also reminds us that all the messengers before the Holy Prophet Muhammad (saw) have died. A place that has been waiting for centuries for a living prophet does not fit this teaching.