According to local media, the body of the deceased man was dragged into Carlow post office on Friday by two men propping him up.
Staff became suspicious and the two men fled after being questioned, leaving the deceased behind.
The bizarre incident is now being investigated by the Gardai, the Irish police, which said it was investigating the “unexplained death of an elderly male”.
The drama unfolded after a man visiting Hosey’s shop on Staplestown Road at about 11.30am on Friday and asked if he could withdraw another person’s weekly pension, according to the Irish Times.
However, they were told that the pensioner would have to be present for a payment to be made.
Later two men attempted to withdraw the pension with a dead body in tow. The deceased is thought to have been in his late 60s and to have lived near to the post office.
A source told the Irish Independent: “They had pulled a woolly jumper over his face and put a hat on his head and carried the body down to the post office.”
A woman working in a beauty and nail salon across the road from the post office described the incident as “unbelievable”.
She told the Irish Times: “It’s all anyone has been talking about . . . it is unbelievable”.
Fine Gael Cllr Fergal Browne said the incident was “shocking and very upsetting for everyone locally”, especially for staff at the post office.
He said the deceased was a “decent guy, very well regarded and liked and caused no offence to anybody”.
“It’s unreal. You are looking at it as a rational person, but whoever did this were not rational,” he said.
A house on nearby Pollerton Road has been sealed off by police as the investigation into the incident continues.
The body of the deceased man was removed from the scene on Friday night.