Answered by Sayyidi Habib Umar bin Hafiz (may Allah protect him and benefit us by him)
What does it mean when we say that the Prophet ﷺ is created from Allah’s light?
This has been reported in several hadith narrations. In reality there is no light other than the light of Allah and every light is derived from His divine light. Allah says: Allah is the light of the heavens and earth. The foundation of created light is the light of the Prophet ﷺ. His light and spirit was the first thing that Allah created before He created any physical things. He is the first in the created world. There are a number of things which are mentioned as being the first thing that Allah created, such as the Throne, the Foot-stool and the Pen. These things were created before other things and were among the first things to be created, but they were created after the light of the Prophet and were derived from his light.
 Al-Nur, 24:35