山羊 (shān yáng) literally means 'mountain sheep'—combining 山 (shān), meaning 'mountain', and 羊 (yáng), meaning 'sheep' or 'goat'. In modern Chinese, it specifically refers to the domesticated goat (Capra aegagrus hircus), not sheep (which is 绵羊 mián yáng). Unlike sheep, goats are known for their agility, climbing ability, and preference for rocky, mountainous terrain—hence the name. The term is neutral in register and widely used in everyday speech, agriculture, biology, and children’s books.

山羊 appears in idioms like 山羊胡子 (shān yáng hú zi, 'goat beard'), describing a long, thin beard, and in cultural contexts such as the Chinese zodiac (where the Goat—often translated as 'Sheep' or 'Ram'—is actually based on the broader concept of 羊, but 山羊 specifies the goat species). It’s distinct from 绵羊 (sheep) in both appearance and behavior: goats have straighter horns, beards, and browse rather than graze.