As far as Islamic Shari`ah is concerned, a Muslim is encouraged to praise the Prophet (peace and blessings be upon him) without exaggeration and to refer to his good ethics and morals to encourage himself or herself and others to follow in his footsteps and guidance. It is also permissible to listen to poems or naats that praise the Prophet (peace and blessings be upon him) and display his character and morals.
Dr. Muzammil H. Siddiqi, president of the Fiqh Council of North America, states, Naats are poems in the praise of Prophet Muhammad (peace and blessings be upon him). It is very good to praise the Prophet (peace and blessings be upon him) and refer to his good example and character to encourage oneself and others to follow his Sunnah. There are many beautiful poems in the praise of the Prophet (peace and blessings be upon him) written by the Sahabah [Arabic for: the Prophet’s Companions] and later generations of Muslims. Indeed, it is permissible to listen to these poems.
When praising the Prophet (peace and blessings be upon him), we should make sure that we do not exaggerate [in Arabic: ghuluww] in his praise. The Prophet (peace and blessings be upon him) said, “Do not overpraise me as Christians overpraised Jesus son of Mary. Say [when refering to me], ‘Servant of Allah and His Messenger.'”