Seeing a shroud in your dream can symbolize joy for the sorrowful and regret for the sinful. If you dream of buying a shroud for a friend or relative, it reflects your love and compassion for them. Such dreams encourage you to reassess your relationships and emotions, prompting you to connect more deeply with those you care about.
From Imam Muhammad Ibn Seerin's Dictionary of Dreams According to Islamic Inner Traditions â entry "Shrouding" (page 389).
Shrouding the body of a deceased person in a dream is a cause of happiness for a sad person and repentance for a sinner. If someone sees himself broke ring on behalf of a friend or a relative to purchase a shroud for him in a dream, it means that he will pay and intercede on behalf of someone who strayed from God's path, whom one regularly admonishes and advises to correct his actions and thoughts. It also means helping him against poverty or adversities, because death is the culminating phase of practicing one's religion in this world. A shroud in a dream also connotes a prison, or committing a major sin. Shrouding the dead after washing the body in a dream means washing it from impurities. (Also see Burial; Camphor; Disrobe; Mummification; Shroud)
Note: Islamic dream interpretation depends on the dreamer's circumstances and state. This is a general guide drawn directly from the source book.