Does the soul of a deceased person rejoice over our good deeds?
The saying “your father would be pleased” is mainly a way of teaching goodness. It does not mean the deceased is watching us, but that he would have acted this way in our place.
In many families you hear sayings like “your grandfather would be proud of you” or “your father would not have liked that”. Some people wonder whether this means the soul of the deceased is watching us and is pleased or upset by what we do.
Such sayings have nothing to do with contact with the souls of the dead. They are a tool of upbringing. People naturally link goodness with their parents and ancestors. Every generation thinks its forefathers were better than itself, even if the truth is sometimes the other way round. That is why it touches a child when goodness is urged in the name of a father or grandfather.
So whoever says this does not mean that the father is looking on. They mean that the father would not have acted this way in the child’s place. It sets an example before the child. It is not a statement about the afterlife.
Even so, a real bond between children and their deceased parents remains. The hadith above names righteous children who pray for their parents as something that continues to benefit the deceased. The best way to do good to parents after their death is therefore to be a good person oneself and to pray for them.