Objective: To investigate the effects of Shenling Baizhu Powder (SLBZP) on skeletal muscle atrophy in diabetic mice, focusing on its regulatory role in the miR-23a/PI3K/AKT pathway, and to explore its clinical implications for the treatment of sarcopenia and physical performance enhancement. Methods: A diabetic mouse model with skeletal muscle atrophy was established to evaluate the therapeutic effects of SLBZP. Mice were divided into control, diabetic model, and SLBZP-treated groups, with the latter receiving different doses of SLBZP. Muscle mass, grip strength, and fiber cross-sectional area were assessed as indicators of muscle function and morphology. miR-23a, PI3K, and AKT expression levels were analyzed using qRT-PCR and Western blot. Additionally, histological evaluations of muscle tissue were conducted to observe structural changes. Statistical analyses were performed to assess correlations between molecular changes and physical performance metrics. Results: SLBZP significantly improved muscle mass and grip strength in diabetic mice compared to the untreated model group (P < 0.05). Histological analysis revealed increased muscle fiber cross-sectional area and reduced atrophic changes in the SLBZP-treated group. Molecular analyses demonstrated upregulation of the miR-23a/PI3K/AKT pathway, which is associated with muscle protein synthesis and reduced apoptosis. The therapeutic effects were dose-dependent, with higher doses of SLBZP showing greater improvements in muscle function and morphology. Conclusion: Shenling Baizhu Powder effectively mitigates skeletal muscle atrophy in diabetic mice by enhancing the miR-23a/PI3K/AKT pathway, promoting muscle regeneration and improving functional outcomes. These findings suggest its potential as a therapeutic agent for managing sarcopenia and optimizing physical performance, particularly in populations at risk for muscle loss, such as aging adults and athletes recovering from injury or metabolic disorders. Further clinical research is warranted to validate these results and explore its integration into sports and rehabilitation medicine.