All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.
He also said: "What does not have clear features, even if it has limbs, a head and neck, but there are no eyes or nose, there is nothing wrong with that, because this is not imitating the creation of Allaah." [End quote]
For more benefit, please refer to Fatwa 157829.
However, if the image is large and it shows the features of the people, then it is forbidden to hang it if it is a drawn picture. But if it is a photographed picture, then there is a difference of opinion with regard to hanging pictures of living beings and taking such pictures. Some scholars are of the view that they are permissible but some of them are of the view that it is forbidden to have them, and there is a difference between taking the pictures and keeping them and hanging them on walls.
Shaykh Ibn ‘Uthaymeen was asked about taking pictures with a camera and the ruling of hanging pictures on walls and he said: "As for taking pictures with a camera whereby one does not need to draw with one's hand, then this is permissible...but what should be considered is the purpose of taking such pictures. If the purpose is for a person to keep them for memory, then taking such pictures is forbidden, because the means have the same rulings as the intended goals, and taking pictures for memory is forbidden; the Prophet, sallallaahu ‘alayhi wa sallam, said: 'The angels do not enter any house in which there is an image,' This is evidence that it is forbidden to keep pictures in homes. As regards hanging pictures on walls, then it is forbidden and it is not permitted as the angels do not enter any house in which there is an image." [End of quote]
He also said: "Hanging pictures on walls, especially large pictures, is forbidden, even if there is only part of the body and head showing in them." [End of quote]
Therefore, in order to be on the safe side, it is better not to hang pictures except after defacing the features that make it forbidden.
Allaah Knows best.