'balagan' originates from Modern Hebrew, specifically the word 'בלאגן' (balagan), where it is used in slang to mean 'mess' or 'chaos'.

'בלאגן' in Modern Hebrew was itself borrowed from Russian 'балаган' (balagan), which originally meant 'a booth, stage, or small travelling theatre' and was used for disorderly or clownish performances; that Russian word likely goes back to Turkic or Persian roots referring to a makeshift structure or booth.

Initially the root sense was related to a 'booth' or 'stage' (a place of disorderly entertainment); over time in Hebrew and colloquial use the meaning shifted to 'a chaotic, disordered situation' and this modern sense was then borrowed into English.