'smithy' originates from Old English, specifically the word 'smiððe,' where 'smið' meant 'smith' and '-ðe' was a suffix denoting a place.

'smiððe' transformed into the Middle English word 'smythy,' and eventually became the modern English word 'smithy'.

Initially, it meant 'a place where a smith works,' and this meaning has largely remained the same in modern usage.