Answer
In the Name of Allah, Most Gracious, Most Merciful.
All praise and thanks are due to Allah, and peace and blessings be upon His Messenger.
In this fatwa:
Funeral rituals for a child are the same for an adult Muslim. However, in the funeral prayer one makes duaa for the child’s parents after the third takbeer.
Answering your question, Dr. Wael Shehab, PhD in Islamic Studies from Al-Azhar University and currently the Imam of the Downtown Toronto Masjid in Canada, states:
Like an adult, funeral prayer should be offered for a dead Muslim child. He or she should also be washed, shrouded, and buried.
However, after the third takbeer in the Funeral prayer, we pray for the child’s parents’ forgiveness and salvation.
We may say:
“Oh Allah, make him/her (this child) a source for (his or her parents’) salvation; and make him/her a source of reward and treasure for us (them); and make him/her an intercessor for us (them), and one whose intercession is accepted.”
Almighty Allah knows best.
Editor’s note: This fatwa is from Ask the Scholar’s archive and was originally published at an earlier date.