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When your character dies, you will lose all of the items you possess in your current inventory. You would lose the items in your exosuit while on foot or ship while flying. After you have respawned, there will be an icon on your HUD that will lead you to your grave so you may recover your lost items.

As stated in the No Man's Sky: Next release log, you have the ability to prey on other players to survive. If I were join a multiple session and were to killed by another player, would that said player have the ability loot my grave before I have the chance to recover my items? If yes, would they recover all my lost items or would they obtain general items as when fending off pirates?

  • Let me join your game, kill you, and see if I can loot your stuff ;) – GameLikeBeaker Aug 8 '18 at 16:07
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According to this article, you are not able to loot the grave of another player. A player decided to become a pirate and started preying on other players. They did various things, ranging from base vandalism, theft, and even killing another player. After they had killed another player, the grave did not appear on their screen.

They respawned and (presumably) recovered their gear from their grave (which I couldn't see, so I guess you can't loot someone after you kill them). I apologized, then transferred 20 Chromatic Metal into their inventory, then fled in shame.

(emphasis my own)

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