Abdullah Ibn Abbas (r.a.) reported: ‘I heard the Messenger of Allah (saws) saying,
Put on white clothes because they are the best; and use them for shrouding your dead
Related by At-Tirmidhi and Abu Dawud
Commentary
Although it is permissible for the believers to adorn themselves with almost any color clothes they wish and please, the Messenger of Allah (saws) encouraged the believers to prefer white clothes as they are the purest and closest to modesty; and he (saws) guided the believers to shroud the dead in white
قال رسول الله صلى الله عليه و سلم: " البسوا من ثيابكم البياض، فإنها من خير ثيابكم، وكفنوا فيها أمواتكم " أخرجه أبو داود.