As the names derived from Mount Sugartop are misleading (the mountain does not dominate the bay) and as none of the existing names for the feature are used locally, the UK Antarctic Place-Names Committee in 1957 proposed a new name. Jacobsen Bight is for Fridthjof Jacobsen (1874–1933), who worked at the Compañía Argentina de Pesca station at Grytviken, 1904–21, and later became vice president of the company.
The original name Mount Sugartop was deemed inaccurate, as it did not accurately reflect the mountain's connection to the bay. In response, the UK Antarctic Place-Names Committee proposed a new name in 1957. Jacobsen Bight is a fitting tribute to Fridthjof Jacobsen (1874–1933), who worked at the Compañía Argentina de Pesca station from 1904 to 1921 and later held the position of vice president.