SCARY BUT TRUE!
What happens to our soul when we sleep? Islam teaches that at night while we sleep our souls return to their Source, back to Allah SW. He said; 
"Allah takes souls at the time of their death and [the souls] of those that donot die during their sleep. He retains those souls for which He has ordained death, whereas He releases the rest for an appointed term." [39:42]The Prophet (pbuh) was asked, “Do people of Heaven sleep?” He answered: “Sleep is the brother of death. People of Heaven do not sleep”

The soul is an eternal entity separate from the body. During our lifetime the two are unified, but with the expiration of the body the soul transcends the material world to enter the spiritual realm.

When we sleep our souls ascend to Him… in the morning He restores one’s soul to everyone.

"And it is He who takes your souls by night and knows what you have committed by day. Then He revives you therein that a specified term may be fulfilled. Then to Him will be your return; then He will inform you about what you used to do." Quran 6:60

All souls can be traced back to Adam AS, the first man. The Quran explain how the Creator blew a soul into man which forever connected him to the divine Source. When we sleep the soul escapes our body and returns to its Maker. Islam suggests that sleep is a time of din (judgement), with the onset of sleep Allah collects the soul to examine whether the individual merits life or death. Should it be decreed their time, Allah retains the rooh (soul) and the body expires.

That is why when we wake up in the morning we recite this prayer; 'Praise is to Allah Who gives us life after He has caused us to die [sleep] and to Him is the return.'

Upon awakening the first conscious moments of pious Muslims are spent thanking Allah for the gift of life. This is done through the recital of the respective prayer above. With these words we thank the Creator for returning our soul and granting us the opportunity to further serve His will in this world.

Therefore, for us who are lucky enough to regain back our souls each day should not misuse our lives by doing things against Allah's commands. And instead be righteous servants by doing rights things. Furthermore, the Holy Ramadhan is knocking, let us continue do good deeds as usual and give charities to less fortunate to purify our deeds and souls.