Does ALLAH laugh on situations where a human laughs? Like does ALLAH laugh at something funny which happens in the human world?

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    It has been edited now.
    – Ashar Shah
    Dec 18, 2017 at 20:30

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Allah, Exalted He is, Laughs, His laughter isn't like any of His creation, and as how appropriate for His glory.

It is not like laughing at funny incidents we face in life, rather the narrated hadeeth that described Allah as laughing are few.

Narrated / Authority Of: Waki bin Hudus that his paternal uncle Abu Razin said: “The Messenger of Allah (saw) said: 'Allah laughs at the despair of His slaves although He soon changes it.' I said: 'O Messenger of Allah, does the Lord laugh?' He said: 'Yes.' I said: 'We shall never be deprived of good by a Lord Who laughs.'” (Hasan)

Also you can find another example in Sahih Bukhary and Muslim.

It has been narrated on the authority of Abu Huraira that the Messenger of Allah (ﷺ) said:

God laughs at the two men both of whom will enter Paradise (though) one of them kills the other. They said: Messenger of Allah, how is it? He said: One of them fights in the way of Allah, the Almighty and Exalted. and dies a martyr. Then God turns in mercy to the murderer who embraces Islam, fights in the way of Allah, the Almighty and Exalted, and dies a martyr. Sahih Muslim 1890

And Allah knows best.

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