To understand what happens, first we need a definition: Soul is true consciousness and extends itself as mind and emotion, tethered to a physical body. People commonly think of “I” as body, mind, or emotion, which means that they they are under the natural illusion that they are their extensions. But the real “I” is soul consciousness, and the seeming “I” of body, emotion, and mind, is borrowed from that deeper identity.
So, to get at the answer to your question, ask “What happens to the soul during Earth life.” For most persons, though not for all, the soul remains more or less in the background and the external personality consciousness has little or no awareness of the source of its identity in soul. But though the personality remains largely ignorant of most of its higher nature, the soul consciousness (you) on its on plane is fully aware of the personality and its experiences in the world.
What we, as soul, are doing during Earth life is learning—we gain knowledge and experience, and grow in love and wisdom. We are slowly evolving and perfecting all three of our vehicles (body, mind emotion).
So then, your question, “What happens to the human soul after death?” The answer is simple. What happens is the same thing that happens during Earth life: we learn, we evolve, and we become more perfect expressions of love because love is the primary nature of the soul. This means that the soul, after the death of the physical body, no longer remains completely in the background and the illusion of “I” as limited body-emotion-mind is gradually broken. There is then a fuller awakening to who and what we are. And just as in Earth life, afterlife includes interactions with other people—other souls, minds, loves. The adventure that is life at its best in the physical world—that same adventure occupies us after death. Your life, the life of the soul, is expressed in an unfolding future that is unlimited, and the nature of that life transcends the most idealistic human conceptions.
Source: – Quora