'balmacaan' originates from the placename 'Balmacaan' (an estate in Inverness-shire, Scotland). The garment was named after the estate or the style associated with it.

'balmacaan' entered English in the late 19th century as 'balmacaan coat' (named for the Balmacaan estate) and was later shortened in usage to simply 'balmacaan' to refer to the coat itself.

Initially it referred specifically to a style or coat associated with the Balmacaan estate; over time it generalized to mean any loose, raglan-sleeved overcoat of that style.