'ammolite' originates from 'ammonite' (the fossilized marine animal) and the suffix '-lite,' which is used for minerals and gemstones. 'Ammonite' comes from the Latin 'ammonites,' referring to the Egyptian god Ammon, whose horns the fossil resembles.

'Ammolite' was coined in the 20th century as a trade name for the gemstone made from ammonite fossils, combining 'ammonite' and '-lite.'

Initially, 'ammolite' referred specifically to the gemstone material from ammonite fossils, and this meaning has remained unchanged.