A stillborn baby i.e. a baby born dead – should be washed, adequately wrapped with a piece of cloth and honourably buried in a Muslim cemetery. There is no Salaatul Janaazah for a stillborn baby. The stillborn infant should be given a name.
(Raddul Muhtaar, Vol. 2, pg. 227-8, Published by H.M.Saeed Company, Karachi)
Sayyiduna Rasoolullah (peace be upon him) has stated,
إِنَّ السِّقْطَ لَيُرَاغِمُ رَبَّهُ إِذَا أَدْخَلَ أَبَوَيْهِ النَّارَ . فَيُقَالُ أَيُّهَا السِّقْطُ الْمُرَاغِمُ رَبَّهُ أَدْخِلْ أَبَوَيْكَ الْجَنَّةَ . فَيَجُرُّهُمَا بِسَرَرِهِ حَتَّى يُدْخِلَهُمَا الْجَنَّةَ
“Indeed, a baby born in miscarriage (i.e. a stillborn infant) will show aversion with his or her Lord on the day of Judgement when He commands his or her parents to the hell-fire. It will be said, ‘O baby born in a miscarriage showing aversion to his or her Lord, enter your parents into Jannah.’ Thus, the child will pull them from the hellfire via the umbilical cord until they are entered into Jannah.”
(Sunan Ibn Majah, pg. 115, Published by Qadeemi Kutub Khana, Karachi)
Allah and His Rasool know best.
Islamic Lifestyle Solutions