This is one of the pages of the sci.lang.japan Frequently Asked Questions.
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>> 6. Word origins
6.2. What are the origins of the san suffix for names?
The word san is a derivation from a more respectful word sama (様). Sama originally meant "appearance" but
then was used to show respect also. The suffix chan (ちゃ ん) for children and "cute" people comes from the s -> ch sound change
which is typical of "baby talk" in Japanese (another common example is
chitchai for chiisai).
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