The present name Lilla Nygatan became prevalent from 1720. Because Lilla and Stora Nygatan were often confused with each other, it was suggested in 1921 that Lilla Nygatan should be renamed Postiljonsgatan ("Mailcoach Street") in reference to the post office, although this proposal was never adopted.
The present name Lilla Nygatan emerged as dominant from 1720. In an effort to distinguish it from Stora Nygatan, which was often mixed up, a proposal in 1921 suggested renaming it Postiljonsgatan, referencing the postal service, but this plan was never adopted.