Epidemiological studies report that more than half of people over the age of 65 years suffer from variable sleep problems. In this study, we conducted a cohort study to investigate the effects of sleep duration on muscle mass and function within a Chinese, community-dwelling elderly population. Our study population consisted of residents living in the township central hospital of suburban Tianjin, China. We measured muscle strength and walk speed. We divided sleep duration into the following four groups: < 7 h, 7–8 h, > 8–9 h, > 9 h. A total of 902 participants completed the 3-year follow-up. We observed a U-shaped relationship between sleep duration and fall risk. Compared to the 7–8 h group, the fall risk within the < 7 h group was 3.58 (1.99, 5.24) times higher, and the fall risk within the > 9 h group was 2.23 (1.20, 3.13) times higher. After adjustment, muscle mass declined by −6.82% (−11.27%, −3.83%) in the < 7 h group. The > 9 h group exhibited a mortality risk that was 3.46 (1.37, 6.23) times higher the normal sleep group (7–8 h). In summary, we observed a U-shaped relationship between sleep duration and falls. Short sleep duration have negative effect on muscle mass decline, and long sleepers have higher mortality within a Chinese, community-dwelling, elderly population.