Introduction: Injuries to peripheral nerves cause distal muscle atrophy. The effects of adipose‐derived stem cell (ASC) injections into a muscle after injury were examined. Methods: A 1.5 cm defect in the rat sciatic nerve was created, resulting in gastrocnemius muscle atrophy. The nerve defect was repaired with autograft; DiR‐labeled ASCs were injected into the gastrocnemius immediately postoperatively. Quantitation of gross musculature and muscle fiber area, cell survival, fibrosis, lipid deposition, inflammation, and reconstructive responses were investigated. Results: ASCs were identified in the muscle at 6 weeks, where injections showed increased muscle mass percentage retained, larger average fiber area, and less overall lipid content accumulated throughout the musculature. Muscles having received ASCs showed increased presence of interlukin‐10 and Ki67, and decreased inducible nitric oxide synthase (iNOS). Discussion: This investigation is suggestive that an ASC injection into denervated muscle post‐operatively is able to delay the onset of atrophy. Muscle Nerve 59:603–603, 2019