This experiment was conducted to investigate the effects of dietary supplementation with different levels of coated sodium butyrate (CSB) and polysaccharides extracted from Cordyceps cicadae (CCP) on growth performance, intestinal tissue morphology and ileum microbiome in squabs. A total of 420 1-day-old squabs were randomly divided into seven groups with 5 replicates each and 12 squabs per replicate. The squabs were fed basal diet (control group) and basal diet supplemented with different levels of CSB (275, 550, and 1,100 mg/kg, groups CSB-275, CSB-550, CSB-1100) and CCP (27.5, 55, and 110 mg/kg, groups CCP-27.5, CCP-55, and CCP-110), respectively. The experiment was conducted for 28 days. The results revealed that the final BW and average daily gain concentration were higher (P < 0.05) in squabs of CSB-275 and CCP-110 groups than those in the CON group. Comparing with control group, the squabs in the groups CSB-275, CSB-550, and CCP-55 obtained higher villus height/crypt depth (VH/CD) of the duodenum and higher VH of the jejunum (P < 0.05). Operational taxonomic units in the groups CSB-550 and CCP-27.5 were also increased (P < 0.05). Regarding the relative abundance of flora, the Actinobacteria abundance in the groups CSB-550, CSB-1100, and CCP-55 were higher than in control group (P < 0.05), and the Aeriscardovia abundance of CSB-275, CSB-550, CSB-1100, and CCP-110 were elevated (P < 0.05). However, the Enterococcus abundance in CSB-275, CSB-550, CSB-1100, and CCP-27.5 decreased (P < 0.05). In summary, results obtained in the present study indicate that CSB and CCP can improve growth performance, intestinal microbial balance and gut health of squabs.