Whenever the Avatar dies, they reincarnate into a new body from the next nation in the Avatar cycle. For instance, Roku reincarnated into Aang who reincarnated into Korra.
Is there any evidence that people aside from the Avatar reincarnate as well?
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The sad thing being that the other one doesn't have an accepted answer either -- though its top answer is logically sound. – Mar 24 '16 at 15:53
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1@Axelrod. The title threw me off since "spirits" usually refers to non-humans in Avatar, but that does appear to answer the question. – Thunderforge Mar 24 '16 at 15:55