'astrakhan' originates from Russian, specifically the word 'Астрахань' ('Astrakhan'), the name of the city on the Volga where the pelts were commonly traded.

'astrakhan' was borrowed into Western European languages (via French/Dutch forms such as 'astracan'/'astrachan') in the 16th–17th century and was adopted into English to denote the fur; the spelling later standardized as 'astrakhan'.

Initially linked to the place name (the city) or pelts from that region, the term evolved to denote the specific type of curly karakul fur, garments made from it, and later imitation fabrics resembling that fur.