The origin of the name Habsiguda may have originated from Habshi, which was a common term referring to Africans although it relates to Abyssinia, an ancient name for Ethiopia in Africa. This barren land was a Cattle ground for Nizams of Deccan Princely State, and was probably the home of the African troops in Nizam's military. Abyssinians used to be brought as slaves and later as laborers by Nizams to take care of their cattle. Habeesis lived for decades in and around this area hence the name "Habeesguda" and now being called as Habsiguda. Today one can still find these Abyssinians in many parts of Old City and especially in "Barkaas". Many of these people were mixed with local people and accepted in Muslim communities.