I am making a script for a character who cannot die. While the script works correctly for when attacked by player, I am also patching the loophole where the character could be killed by SetHealth 0 command in the console. It does the death check correctly upon exiting the console and does a Resurrect after which the rest of the script proceeds normally. However, before the resurrection the death animation is played as normal. Is there a way to stop the animation so the character just continues on as normal when the console is exited?

You could possibly interrupt the death animation with another animation using the Playgroup function in the script, by selecting an Idle or something. I've noticed how this overrides even a paralysis spell (the NPC keeps moving to complete the animation regardless) so it may override a death fall as well. You'd have to pick through Morrowind Scripting for Dummies to decide which Idle you want, as it lists what they do, and then add "Playgroup Idle 1" or whichever. The number 1 there is not the Idle number but a flag that tells the animation to interrupt the current animation rather than waiting for it to finish. Also make sure Playgroup is only called once and change to the next state (of your variable) right away.