Shahnaz
Yes, Shahnaz is used by Muslims though it has Persian linguistic roots. It carries a positive meaning and has been borne by Muslim women throughout history, particularly in Mughal and Persian cultural spheres.
It combines Persian 'Shah' (king) and 'Naz' (pride/coquetry), meaning 'Pride of the King' or 'Royal Grace,' suggesting someone who brings honor and dignity.
While not a Quranic name, it appears in historical records of Mughal nobility and Persian poetry, associated with aristocratic Muslim women in courts from the 16th-19th centuries.
Shahnaz is currently rare, considered a vintage or classical name that has fallen out of common usage but retains its elegant, timeless appeal.
Names like Shahzad (prince), Nazia (proud), or Shahana (queenly) complement Shahnaz well, maintaining the royal Persian aesthetic.