Extracted this from the wonderful world of internet:
Can animals be reborn as humans beings? Yes, if they come into
contact with the Dharma, see a Buddhist temple, or smell incense
burning. The contact can plant a Dharma seed which takes root when
they're reborn as humans. They can achieve their full potential and
become enlightened, but only as a human being. So, it's up to all
of us to help our pets be reborn in the human realm.
Hence for us, human to help our insect counter parts to
reincarnate into human realm, we need to dedicate our merits to
them, together with all sentient beings. If you came across a dead
insect in your path, you could do a simple chanting for them, as
though their body is dead, their consciousness is still there. No
doubt they have created negative karma by preying on other
animals/insects, these are karma of ignorance, cos they do not have
our wisdom, but all beings have the same Buddha Nature as us.
