Background: Bone tissue undergoes continuous remodeling to maintain a steady state of bone equilibrium. During this process, osteoblasts actively stimulate bone formation, while osteoclasts continuously engage in bone resorption. The dynamic equilibrium between bone formation and bone resorption is crucial for maintaining bone structure. In a healthy human skeletal structure, the two components are constantly in a state of benign dynamic equilibrium. However, due to factors such as aging, trauma, bone diseases, and other influences, the activity of osteoblasts decreases while the activity of osteoclasts increases. This disrupts the dynamic equilibrium, leading to a decrease in bone metabolism. As a result, bone resorption gradually surpasses bone production, making it challenging to maintain a normal amount of bone mass. The effectiveness of traditional Chinese medicine in treating bone-related disorders is extraordinary, and its molecular biological mechanism has become a widely discussed subject. Objectives: This study aims to unravel the classical signaling pathways and potential targets involved in the effects of traditional Chinese medicine on osteoclast differentiation, and to provide evidence for its clinical efficacy. Methodology: The main keywords chosen for this study were “Traditional Chinese Medicine (TCM)”, “osteoclast differentiation”, “natural plant”, and “medicinal plant”. To gather relevant literature, we utilized multiple online search engines, including PubMed, Web of Science, and CNKI, as well as other publication resources. Results: The results indicated that Traditional Chinese Medicine (TCM) can modulate signaling pathways, including NF-κB, MAPKs, STATs, and Wnt/β-catenin pathways., to influence osteoclast differentiation. This modulation involves maintaining the balance of inflammatory interactions, inhibiting oxidative stress. Conclusion: The impact of traditional Chinese medicine on osteoclast differentiation is reflected on multiple levels and through various pathways. Future research is envisioned to delve deeper from the perspective of precision-targeted therapy, aiming to provide insights for identifying the core targets of traditional Chinese medicine in treating orthopedic diseases.