'tobacco-friendly' is a compound of 'tobacco' and 'friendly'. 'tobacco' originates from Spanish, specifically the word 'tabaco', which in turn likely came from the Taíno word 'tabaco' referring to rolled leaves or the smoking plant; 'friendly' originates from Old English, specifically the word 'freond', where 'freond' meant 'friend' and the adjectival suffix '-ly' formed adjectives meaning 'characteristic of'.

'tobacco' entered English in the 16th century from Spanish 'tabaco' (itself from Taíno); 'friendly' developed from Old English 'freond' to Middle English 'frendli' and modern 'friendly'. The compound 'tobacco-friendly' is a modern English formation (20th century onward) combining these elements to describe attitudes or policies that favor or permit tobacco use.

Initially, 'tobacco' referred to the plant or rolled leaves used for smoking and 'friendly' meant 'characteristic of a friend' or 'favorable'; combined in modern usage they mean 'permitting or favorable to tobacco use'.