All perfect praise be to Allah
Yes indeed, there is a life after death and before the judgement day, we commonly refer to it as life of BARZAKH برزخ , it includes the happening in the grave, all the good or bad that happens in there to a person, according to what he did is included in this.
Allah says:
“The Fire, they are exposed to it, morning and afternoon. And on the
Day when the Hour will be established (it will be said to the angels):
‘Cause Fir‘aun’s (Pharaoh) people to enter the severest torment!’”
[Ghaafir 40:46]
Similarly the good souls are given special treatments, like in a hadees it says, Allah opens a window from heaven to their graves. And for bad people, diferent kind of punishments are carried out.
For more explanations, read What is al-barzakh?.
Now there is a really long hadees, which explains much of this in detail. I am quoting it from this source. below:
Upon the authority of al-Bara' ibn `Aazib who said: We went out with
the the Prophet (salla Allahu alaihi wa sallam) to a burial of a man
from the Ansar (original inhabitants of Madina) until we arrived at
the grave, and he still had not been placed in the slot of the grave.
Then the Messenger of Allah (salla Allahu alaihi wa sallam) sat down
and we sat around him. You would have thought that birds were upon our
heads from our silence, and in the hand of the Messenger of Allah
(salla Allahu alaihi wa sallam) was a stick which he was poking the
ground with. [Then he started looking at the sky and looking at the
earth and looking up down three times]. Then he said to us: "Ask Allah
for refuge from the torment of the grave", he repeated this command
two or three times. [Then he said O Allah I seek refuge in you from
the torment of the grave][three times]. Then he said: "Verily, the
believing servant, when leaving this life and journeying to the
hereafter angels will descend upon him, their faces will be white as
if they were suns, they will have with them a shroud (kafan) from the
shroud of Paradise), and an embalmment (HanouT) from the embalmments
of heaven. Then, they will sit within eye-shot of him.
Then the angel of death (peace be upon him) will come and sit at his
head and will say "O you virtuous soul; come out to a forgiveness and
a pleasure from your Lord ". So it will come out as a drop comes out
of the mouth of a jug (with ease), then he will take it, not leaving
it in his hand for longer that a blink of an eye until they (he and
the other angels) have placed it in that shroud and that embalmment.
And there will emanate from it a smell like that of the most sweet
smelling musk on the face of the earth. Then they shall ascend with
it, and they shall not pass with it by any group of angels but they
will say: What is this good and sweet-smelling soul?. Then they shall
say to them (he is) "such" the son of "such" choosing the best of the
names he used to be called in this life. Until they reach the lowest
sky, then they shall ask permission to enter, and they shall be
granted entry, until they end at the seventh heaven sky, then Allah,
exalted and high, shall say: "write the book of my servant in
illiyeen (1) [And what will expalin to you what Illiyeen is
illiyeen, there is a register fully inscribed to which bear witness
those nearest to Allah (see 83:18)], and his book will be written in
illiyeen, and the shall be said "return him to the earth, for [I
promised them] I have created them from it, and into it I shall return
them, and from it I shall extract (resurrect) them a second time
(20:55)". So [he is returned to earth and] his soul is returned to his
body [he said and he will hear the footsteps of his friends who buried
him when they leave him].
Then two [severe] angels shall come and [terrify him and] sit him up
next to them and shall ask him: "Who is your Lord?". He shall reply
"My Lord is Allah". Then they shall ask him: "What is your religion?".
He shall answer them: "My religion is Islam". Then they shall ask him
"Who is this man who was sent among you?". He will reply "He is the
Messenger of Allah (salla Allahu alaihi wa sallam) peace be upon him".
Then they shall ask him "What have you done?". He shall reply: "I read
the book of Allah, then I believed in it and accepted it". [The angel
will terrify him and ask him "who is your Lord?", "what is your
religion?" "who is your prophet?", and this will be the last trial on
earth for the believer, it is then when Allah says : "Allah will
establish in strength those who believe with the word that stands firm
in this world", so he will answer my Lord is Allah, my religion is
Islam and my Prophet is Mohammad salla Allahu alaihi wa sallam. Then a
caller will call from the sky: "My slave has spoken the truth, so
spread out for him from the heaven, and clothe him from the heaven,
and open a door for him from the heaven (within his grave)", so it's
goodness and its smell will come unto him, then his grave will be
expanded for him as far as he can see.
Then a man will come to him. His face will be handsome, and his
clothes will be handsome, and his smell will be sweet. Then he shall
say unto him: I bring you glade tidings of that which will make you
happy [Rejoice with a pleasure of Allah and delights that endure].
This is the day that you were promised (46:16). Then he will say [and
may Allah give you glad tiding] "who are you?, for your face is the
face of someone who comes with good news". He shall reply: "I am your
good deeds, [by Allah, I did not know of you but that you were quick
to the obedience of Allah and slow to His desoobedience, so may Allah
reward you good]". Then he shall say: "My Lord bring the hour so that
I might return to my family and my wealth" [it will be said to him "be
tranquil"].
He (Mohammed, salla Allahu alaihi wa sallam) said: { And the
disbelieving [transgressor/wicked] servant}, if he is leaving this
life and journeying to the hereafter then angels will descend upon
him, their faces will be black, they have with them a coarse woolen
fabric (sackcloth)[ made of fire]. Then they will sit within eye-shot
of him. Then the angel of death will come and sit at his head and will
say "O you wicked soul; come out to a anger from your Lord and a fury
(from Him)". So it will be distributed (spread out) throughout his
body, then it will be ripped away as a skewer/spit is ripped out of
damp cotton [and in its way out it will tear and cut the nerves and
blood vessels] [and then he will be cursed by all the angels between
the earth and the sky and by all the angels in the sky, and the gates
of heaven are closed. There is no gate in the heaven but its people
supplicate that the wicked soul shall not be ascended to their side],
then he will take it (the soul), not leaving it in his hand for longer
than a blink of an eye until they have placed it in that sackcloth.
And there will emanate from it a stench like that of the most evil
smelling corpse on the face of the earth. Then they shall ascend with
it, and they shall not pass with it by a group of angels but they will
say: What is this wicked soul?. Then they shall say to them (he is)
"such" the son of "such" choosing the most hated of the names he used
to be called in this life. Until they reach the lowest heaven(sky),
then they shall ask permission to enter, and they shall not be granted
entry. Then the Messenger of Allah (salla Allahu alaihi wa sallam)
recited "The doors of the sky are not opened to them, nor shall they
enter heaven until the camel passes through the eye of the needle"
(7:40).
Then Allah, exalted and high, shall say: "write the book of my servant
in Sijjeen (2)(83:7) in the lowest earth". [Then will be said "return
my slave to the earth, for I promised them I have created them from
it, and into it I shall return them, and from it I shall extract
(resurrect) them a second time (20:55)"]. Then his soul shall be taken
away [from the sky] with a mighty hurl [until it is cast into his
body]. Then he (the Prophet salla Allahu alaihi wa sallam) read: "and
those who associate partners with Allah, They are as one who falls
from the sky then is snatched by the birds or is cast by the wind into
a very low place (22:31)". Then his soul will be returned into his
body, [he (the prophet) said : verily he will hear the footsteps of
his friends who buried him when they leave him]. Then two harsh severe
and fearsome angels shall come and [terrify him and] sit him up and
shall ask him: "Who is your Lord?". He shall reply "Huh?, Huh (this is
an expression of sorrow), I don't know". Then they shall ask him:
"What is your religion?". He shall answer them: "Huh?, Huh?, I don't
know". Then they shall ask him "Who is this man who was sent among
you?". He will reply "Huh?, Huh?, I don't know [I heard people saying
that!]". He (the Prophet salla Allahu alaihi wa sallam) said "And then
will be said to him don't ever know and don't ever recite!"].
Then a caller will call from the sky: "My slave has spoken falsely, so
spread out for him from the hell fire, and open a door for him from
the hell fire (within his grave)", so its heat and hot wind will come
unto him, then his grave will be contracted upon him until his limbs
are caught up among one another. Then a man will come to him. His face
will be ugly, and his clothes will be ugly, and his smell will be
vile. Then he shall say unto him: I bring you tidings of that which
will harm you. This is the day that you were promised (70:44). Then he
will say [and you, may Allah give you bad tiding] "who are you?, for
your face is the face of someone who comes with evil". He shall reply:
"I am your evil deeds [by Allah, I did not know of you but that you
were quick to the disobedience of Allah and slow to His obedience, so
may Allah reward you bad, and then will be assigned to him a blind,
deaf and mute person who holds in his hand a hammer, if a mountain is
hit with it, it would disintegrate, and he will beat him with it until
he becomes dust, and then Allah will render him to his initial form,
and he will beat him again, and he (the wicked) will cry of sorrow and
pain a cry that will be heard by all creatures except humans and jinn,
and a door of hell will be opened unto him within his grave and will
spread out for him sheets of hell fire]". Then he shall say: "My Lord
do not bring the hour".
This hadith is narrated by Ahmad Ibn Hanbal, Abu Dawud, Ibn Majah,
at-Tayalisi, and al-Hakim who said it is according to the standards of
Bukhari and Muslim. This text is the text of Ahmad, all text between
brackets is from the other narrators and other narrations of Ahmad.
So, if you read and understand this whole hadees, i think its enough to clear all things up.
PS: One thing i should mention is that this life of BARZAKH is not 100% explained, and is not something anyone can answer what will happen when and how, we know just as much as we are told. And the above hadees pretty much sums up everything. Their are other narrations indications some other things too, but the point is it is enough for us to know that yes their is a life called life of BARZAKH, and we don't need to be curious about it too much. And focus on following quran and hadees and be prepared for this life of barzakh and life after day of judgement. We will not be asked if we knew each and every aspect of life of BARZAKH, but we will be surely asked how much we followed quran and hadees.
Allah knows best