The aim of this study was to investigate the effect of dietary protein level (soybean meal) on growth performance, flesh quality of grass carp, and the related molecular mechanisms. The results showed that appropriate dietary protein levels improved the growth performance, hardness, and pH of muscle while decreasing muscle crude lipid content and cooking loss and altering the antioxidant capacity and metabolic enzymes activities. In addition, appropriate dietary protein promoted the gene expression of myhc-1, myhc-4, myf5, myod, myog, and fgf6a, whereas inhibited that of myhc-7, myhc-2, mrf4, and mstn. Transcriptome profiling of muscle revealed that the flesh quality-specific differences were related to tight junctions and intramuscular fat (IMF) accumulation. GSEA showed that fatty acid metabolism and oxidative phosphorylation were downregulated in SM5 compared with SM1. To conclude, appropriate protein levels improved the growth and flesh quality by regulating muscle antioxidant capacity and gene expression of myhcs and fat metabolism-related signaling molecules.