There are 2 types of death systems in The Rose Of Eternity, one designed for the PC, and one designed for your party members. 

Death For The PC – There are no respawn options for the PC.  Once you are dead, you are dead.  Well, sort of…There are items called “Tonics Of Rebirth” that can bring you back from the dead.  Once you have obtained a Tonic Of Rebirth, you can set an option on the PC specifying if you want them to use Tonics Of Rebirth upon death.  If the option is set to use them, then as soon as the PC dies, they will be revived, otherwise, they will simply stay dead, and you will have to reload your previously saved game.   Also, once you are revived, you will be invulnerable for another 10 seconds, giving you time to readjust to what is going on.

Death For Party Members – Death for party members is quite simple.  They do not die; they are just inactive for a specific amount of time.  More specifically, they cannot fight, heal, or help you in combat in any way.  Just the same, enemies will totally ignore them, as if they weren’t there.  While dead, they will be in an ethereal state, like a walking ghost.  Now, if you talk to them, they will tell you how long until they will be active again, or you can instruct them to use Tonics Of Rebirth (as long as you have some).  Also, you can set an option on them, via their conversation tree, to either auto-revive after the set amount of time, or wait until you explicitly tell them to.  The only way for party members to come back from the dead is from a Tonic Of Rebirth, or waiting the allotted time.  As with the PC, when a party member is revived, they will be invulnerable for 10 seconds.