Diabetic nephropathy (DN) remains the leading cause of end-stage renal disease (ESRD) worldwide. In recent years, glucagon-like peptide-1 (GLP-1) receptor agonists, a novel class of hypoglycemic agents, have garnered significant attention in the field of diabetology. Emerging evidence suggests these therapeutic agents demonstrate considerable potential in diabetic nephropathy management through multiple pathways, including inflammation modulation, oxidative stress reduction, anti-fibrotic effects, renal hemodynamic improvement, lipid metabolism regulation, and modulation of programmed cell death pathways. This comprehensive review examines the pleiotropic biological functions of GLP-1 receptor agonists and elucidates their multifaceted mechanisms of action in combating diabetic nephropathy progression.