Abstract Insomnia is one of the main manifestations of subhealth, a condition that has become increasingly prevalent and seriously affects the physical and mental well-being of many individuals. This study aims to investigate the effects of γ-aminobutyric acid (GABA)-herbal medicine composite (GABA-HMC) on sleep in both healthy and insomnia-plagued rats. According to traditional Chinese medicine theory, the Du Meridian, situated along the dorsal midline fascia of the body, plays a crucial role in regulating neuropsychiatric disorders, such as insomnia. Recent reports morphologically confirmed that telocytes (TCs) are the key cells of meridian essence. In this experiment, we developed GABA-HMC containing GABA, valerian oil, Hypericum perforatum extract, and ginseng extract. We applied it to the Du Meridian of healthy and insomnia rats and observed the changes in TCs. The results showed that treatment with GABA-HMC significantly increased serotonin content, alleviating insomnia and improving sleep quality. Immunofluorescence and transmission electron microscopy (TEM) further revealed that the application of the cream increased the number of TCs in the subcutaneous fascia, elongated telopodes, and enhanced cell junctions. These results suggest that TCs are the key effector cells of GABA-HMC, providing valuable insights into potential novel approaches for treating insomnia.