What is the meaning of Muhammad?

All perfect praise be to Allaah, The Lord of the Worlds. I testify that there is none worthy of worship except Allaah, and that Muhammad, sallallaahu ‘alayhi wa sallam, is His slave and Messenger.

The name Muhammad is derived from the quality of 'hamd' (praise), which is the good mention of something on account of its good qualities.

At-Teebi’s commentary on Mishkaat al-Masaabeeh reads: “. . . because hamd is the good mention (of something) for what is graceful of virtue and kindness.” [End of quote]

It was Abdul-Muttalib, the grandfather of the Prophet, sallallaahu ‘alayhi wa sallam, who named him Muhammad.

As-Seerah Al-Halabiyyah (a Prophetic biography book written by Imaam Al-Halabi) reads: “When the Prophet, sallallaahu ‘alayhi wa sallam, was born, his grandfather sacrificed a sheep (as 'Aqeeqah) for him on his seventh day and he named him Muhammad. His grandfather was asked: ‘O Abu Al-Haarith, why did you name him Muhammad and not name him after his forefathers?’ (and in another narration) ‘and it was not among the names of your forefathers nor was it among the names of your people?’ He said: ‘I wanted Allaah to praise him in the heavens and people to praise him on earth.’

“I (Al-Halabi) say: This agrees  with what was well-known - that his grandfather named him Muhammad by inspiration from Allaah as an auspicious beginning for people praising him much for his abundant good characteristics for which he is praised. Therefore, it was more expressive than Mahmood.” [End of quote]

Allaah Knows best.