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This study explores the impact of embodied musical engagement on non-cognitive skills and rehabilitation outcomes in children with special needs. A sample of 294 children was recruited (68.7% male; largest age subgroup: 7–9 years, 33.7%) for this investigation. Using Structural Equation Modeling (SEM), the study examined the direct effects of musical engagement on rehabilitation performance and the mediating role of non-cognitive skills—such as attention control, emotion regulation, task persistence, and cooperative behavior. Results revealed that embodied musical engagement had a significant direct effect on rehabilitation performance ( β = 0.527, p < 0.001) and a robust positive influence on non-cognitive skills (β = 0.755, p < 0.001). Mediation analysis confirmed a partial mediation effect, with non-cognitive skills accounting for 34.3% of the total effect (Indirect Effect = 0.275, 95% CI [0.181, 0.376]). This research provides new theoretical insights and empirical evidence for music-based interventions offering practical guidance for the rehabilitation of children with special needs, particularly in the contexts of ASD, ADHD, and intellectual disabilities.