If a pilgrim dies, he is to be washed in the same way as any non-pilgrim. He should be shrouded in his ihram (two pieces of seamless cloth which the pilgrims wear while performing `Umrah or Hajj.) His head should not be covered, nor should any perfume be applied to his body, because the restrictions of ihram still apply to him.
Sheikh Hasanin Makhluf, the late Grand Mufti of Egypt (may Allah bless his soul), stated the following: When a pilgrim dies while in the state of ihram, the Muslims are to wash his body, without applying any perfume, shroud him in his ihram attire with his head uncovered, and offer a funeral prayer for him.
Ibn `Abbas (may Allah be pleased with him) reported: “During the Farewell Hajj, a man, who was mounted on a horse, was close to Allah’s Prophet (peace and blessings be upon him) and was trying to learn more from him, when he suddenly fell off his mount. The horse kicked him and he died. When the Prophet (peace and blessings be upon him) was told about him, he said: “Wash him with water and lotus leaves, then wrap him in his two sheets, and do not perfume his body or cover his head, for Allah, the Exalted, will raise him on the Day of Resurrection with Talbiyah (The words uttered during Hajj by the pilgrims) on his lips.”
Commenting on this hadith, Abu Dawud said: “I heard Imam Ahmad ibn Hanbal say about this hadith: ‘There are five acts of the Sunnah that are to be derived from this hadith:
1) a deceased pilgrim is to be shrouded in his ihram attire,
2) he should be washed with water and lotus leaves,
3) his head should not be covered,
4) he is not to be perfumed,
5) and the shroud should be from his own money.’”