The terahertz (THz) to infrared (IR) neural signal model is a potential mechanism for explaining neural communication. Myelinated neurons could be a lossy dielectric waveguide that can propagate these THz–IR neural signals. We propose an electromagnetic loss-amplification model to describe the propagation characteristics of mid-IR signals on myelinated neurons. During transmission with loss and amplification, neural signal intensity can be consistently maintained at 15.9 pW in bands 55 to 75 THz. This phenomenon becomes more pronounced as the number of myelin sheaths increases. However, escalated degrees of demyelination result in a reduction of signal intensity from 15.9 to 10 pW. This phenomenon eventually disrupts the process of loss amplification, consequently impeding the transmission of the signal. These results may contribute to a deeper understanding of mid-IR signal propagation mechanisms in myelinated nerves and studies of diseases associated with demyelination.