The Muslim has a sense of humour, which makes people like him. He mixes with them and jokes with them when it is appropriate to do so, without going to extremes or saying anything hurtful. Similarly, when he is serious, he does not go to extremes of harshness and strictness. His humour is within the limits of Islamic tolerance, and does not go beyond the bounds of truth. This is the example of the Prophet (sallallahu `alayhi wa sallam) and the Sahabah in their jokes and humour. It is reported that the Sahabah said to the Prophet (sallallahu `alayhi wa sallam): "You are joking with us." He said, "But I never say anything but the truth." (Bukhari)
The Prophet (sallallahu `alayhi wa sallam) used to joke, but he never said anything but the truth in his jokes. The Sahabah took the same approach to humour. There are many delightful reports about the jokes exchanged between the Prophet (sallallahu `alayhi wa sallam) and the Sahabah.