This brings us to our second point: namely, why the Blessed Mother, in the 20th century should have revealed herself in the significant little village of Fatima, so that to all future generations she would be known as "Our Lady of Fatima." Since nothing ever happens out of Heaven except with a finesse of all details, I believe that the Blessed Virgin chose to be known as "Our Lady of Fatima" as a pledge and a sign of hope to the Moslem people, and as an assurance that they, who show her so much respect, will one day accept her divine Son too.Evidence to support these views is found in the historical fact that the Moslems occupied Portugal for centuries. At the time when they were finally driven out, the last Moslem chief had a beautiful daughter by the name of Fatima. A Catholic boy fell in love with her, and for him she not only stayed behind when the Moslems left, but even embraced the Faith. The young husband was so much in love with her that he changed the name of the town where he lived to Fatima. Thus, the very place where our Lady appeared in 1917 bears a historical connection to Fatima, the daughter of Mohammed.
-- Archbishop Fulton Sheen, in the book The World's First Love
Related threads:
The Papacy and Islam
Mary And The Moslems(The Virgin Mother Mary & Islam)
What’s wrong with that? The town is named after a Muslim girl who became a Christian. Don’t you think Muslims becoming Christians is a good thing?