'para' (colloquial short for 'paratrooper') arose in English in the mid-20th century as an abbreviation of 'parachute (trooper)'. The word 'para' for a small coin comes into English from Turkish 'para', which itself comes from Persian 'pārah' meaning 'piece'. The combining form 'para-' comes from Greek, specifically the word 'παρά' where it meant 'beside, alongside, beyond'.

'para' as military slang was shortened from 'parachute (trooper)' (English usage influenced by French 'parachute'). The monetary 'para' changed from Persian 'pārah' to Turkish 'para' and entered Balkan languages and English as a loanword. The prefix 'para-' entered English through classical borrowing from Greek 'παρά' (often via Latin or French forms) and was used to form numerous compound words.

Originally (Greek) 'παρά' meant 'beside' or 'alongside'; over time the element para- was reused productively in English word-formation to mean 'beside, beyond, abnormal', while separate senses such as the coin and the military slang developed from unrelated sources and came to be spelled the same in English.