Is It Permissible to Shroud a Man in a Chemise?
Question

Is it permissible to shroud a man in a chemise?
Praise be to Allah.The Sunnah of Shrouding a Man without a Chemise
It is better not to shroud a man in a chemise, rather he should be shrouded in three pieces of cloth which are wrapped around him, as was done to the Messenger of Allah (peace and blessings of Allah be upon him).
It was narrated from `A’ishah that the Messenger of Allah (peace and blessings of Allah be upon him) was shrouded in three pieces of white Yemeni cotton cloth among which there was no chemise or turban. (Narrated by Al-Bukhari, 1264 and Muslim, 941)
Ibn Hazm (may Allah have mercy on him) said: Allah does not choose anything but the best for His Prophet.” (End quote from Al-Muhalla,  5/118)
Is Shrouding a Man in a Chemise Permissible?
So it is better not to shroud a man in a chemise, but if he is shrouded in a chemise, it is permissible.
An-Nawawi (may Allah have mercy on him) said:
It is not disliked to shroud the deceased in a chemise because of the Hadith of Ibn `Umar (may Allah be pleased with him, which says that when `Abdullah ibn Ubayy died, his son came to the Prophet (peace and blessings of Allah be upon him) and said: O Messenger of Allah, give me your chemise so that I may shroud him in it, and (come and) offer the funeral prayer for him, and pray for forgiveness for him.
The Prophet (peace and blessings of Allah be upon him) gave him his chemise, and said: Call me so I may offer the funeral prayer for him. He called him, and when he wanted to offer the prayer for him, `Umar (may Allah be pleased with him) objected and said: Didn’t Allah forbid you to offer the funeral prayer for the hypocrites?
He said: “I have been given the choice. [Allah] said (interpretation of the meaning): {Whether you (O Muhammad ) ask forgiveness for them (hypocrites) or ask not forgiveness for them — (and even) if you ask seventy times for their forgiveness — Allah will not forgive them} [At-Tawbah 9:80].”
He offered the funeral prayer for him, then Allah revealed the words (interpretation of the meaning): {And never (O Muhammad ) pray (funeral prayer) for any of them (hypocrites) who dies, nor stand at his grave} [At-Tawbah 9:84]
And it was narrated that Jabir ibn `Abdullah (may Allah be pleased with him) said: The Messenger of Allah (peace and blessings of Allah be upon him) came to `Abdullah ibn Ubayy after he had been placed in his grave and ordered that he be brought out. He lifted him onto his knees and blew some of his saliva onto him and clothed him in his chemise. And Allah knows best.
Al-`Abbas (may Allah be pleased with him) was also clothed in a chemise. Sufyan said: Abu Harun Yahya said: The Messenger of Allah (peace and blessings of Allah be upon him) was wearing two chemises. The son of `Abdullah said to him: O Messenger of Allah, give my father the chemise that is closest to your skin. Sufyan said: They think that the Prophet (peace and blessings of Allah be upon him) gave `Abdullah his chemise in return for what he had done (for Al-`Abbas, the Prophet’s uncle). (Narrated by Al-Bukhari, 1270)
Al-Bayhaqi (may Allah have mercy on him) included this Hadith in As-Sunan Al-Kubra (3/564) under the chapter heading: “Permissibility of shrouding in a chemise even though we prefer that which was chosen for the Messenger of Allah (peace and blessings of Allah be upon him).” (End quote)
Understanding the Prophet’s Use of a Chemise for `Abdullah ibn Ubayy
The reason why the Prophet (peace and blessings of Allah be upon him) shrouded `Abdullah ibn Ubayy in his chemise:
It was said that it was to soften the heart of his son. An-Nawawi (may Allah have mercy on him) said: This is what appears to be the case.
It was also said that it was because he [`Abdullah ibn Ubayy) had given Al-`Abbas (may Allah be pleased with him), the paternal uncle of the Messenger of Allah (peace and blessings of Allah be upon him), a garment to wear when he was taken prisoner on the day of Badr, so the Messenger (peace and blessings of Allah be upon him) gave him a garment in return, so that he would not owe any favour to a non-Muslim.
And it was said that the Prophet (peace and blessings of Allah be upon him) did that in response to the request of his son when he asked him for that. (Al-Majmu`, 5/152 and Al-Mughni, 3/384)
Some of the scholars said that it is disliked to shroud the deceased in a chemise.
An-Nawawi (may Allah have mercy on him) said: This is a weak opinion, and in fact is false in terms of evidence, because what is disliked is that concerning which there is a proven prohibition, but nothing is proven in this case, so the correct view is that it is not makrooh, but it is contrary to what is best. (End quote) (Al-Majmu`, 5/153 and Al-Mughni, 3/368)
With regard to women, they may be shrouded in a chemise.
For more details, please see the following answers: 98189, 72303, 39201, 154750.
And Allah knows best.