With the right setup, yes. Insulation cuts down sound transmission significantly, and adding mass-loaded vinyl in the walls takes it further. Seal every gap around doors and windows. A solid-core door with weatherstripping makes a noticeable difference versus a standard hollow door.
Placement matters too. The farther from your neighbor's house, the less you need to worry. Positioning the building so the wall with no windows faces their property helps, since windows are the weakest point for sound. You probably won't get full recording-studio isolation, but for practicing drums, amplified guitar, or running a podcast, a well-insulated shed keeps things neighborly.
