Short Answer

It is fine to display pictures (or photos) of living people when there is a group photo but it is best to avoid featuring only one person in a prominent position in a way that leads to veneration (such as a poster of a celebrity). Drawing pictures of living things is fine since the prohibition is on making 3-d sculptures of living things.

Reason for Asking

There are two main categories of hadiths: 1) “Angels do not enter a house where there is a dog or an image.” [Bukhari, Muslim] 2) “Those who make these images will be punished on the Day of Resurrection, and it will be said to them, ‘Make alive what you have created.'” [Bukhari] The questioner wants to know if these hadiths forbid the common practice of displaying photos or drawing pictures on paper.

Advice

Many scholars today from Al-Azhar University say that the hadiths about drawing refer either to three dimensional objects or have some weakness in them due to other contradictory evidence. Many scholars from other schools like Deoband or Madinah University support the prohibition of even 2-d images being posted on a wall or drawn. I slightly lean towards the first opinion. This issue is a known difference of opinion among scholars and therefore, each person should follow the view they are convinced of, and not make it a matter of debate between each other, unless you are discussing with people specialized in the field of Islamic jurisprudence.

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[Shaykh] Mustafa Umar