:salam2:
Abu Dawood (418) narrated from ‘Amr ibn Shu’ayb, from his father, that his grandfather said: The Messenger of Allaah (peace and blessings of Allaah be upon him) said: “Teach your children to pray when they are seven years old and smack them if they do not do it when they are ten, and separate them in their beds.” There is nothing wrong with a man sleeping in the same room as his sister, each in his or her own bed, so long as nothing can be see of their ‘awrahs.
But both of them must take precautions when going to sleep, by wearing something that will cover their ‘awrahs and prevent them from becoming uncovered. Because sleeping is a time when the ‘awrah is likely to be uncovered and desire may be provoked,
In the case of her brother or other mahrams, the woman’s ‘awrah is all of her body except that which is normally visible such as the neck, head, hands, feet and calves. It says in Kashshaaf al-Qinaa’ (5/11): A man may also see the face, neck, hand, foot, head and calf of his mahram. Al-Qaadi said of this report: It is permissible (to see) what normally appears such as the head and hand up to the elbow. End quote
However, it is better for a brother & sister to avoid sleeping in the same room if they can manage to do so.
Adapted from Islam Q & A