From the phrase "a Palouse horse", referring to the Palouse River near which they were first encountered by non-Native Americans. The river is named for the Palouse region; whether the region's name is (an anglicisation of) a francisation of the Sahaptin name of the Palus people or the people's name derives from a French designation of the region as pelouse is unclear.
Shortening of "Appaloosa cat" (itself a shortening of "Apaloosa catfish"), after the Appaloosa (Opelousa) tribe which resided in Louisiana. The tribe's name is Choctaw, the second element of it being losa; the first element is variously supposed to be a term for "head" or "skull", "leggings", "moccasins", or "body".
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