Coronado’s famous search for the Seven Cities of Cibola and the riches thereof, ended on July 7, 1540, outside the sun-bleached rock pueblos of the Zuni Indians on the upper Rio Grande.
Misled by his well traveled priest, Fray Marcos and disillusioned in his quest for gold, he was determined not to return to Spain empty handed. If gold could not be acquired, he was was sure the surrounding country could contribute a wealth of slaves to take back.
The Spaniards fanned out across the countryside searching for people now instead of gold.
One of Coronado’ lieutenants journeyed far to the east, across the Panhandle of what is now Texas, and contacted a party of Caddoan Indians.
These Indians were of the Hasinai tribe, but the Spaniards called them Tejas from the Caddoan word Teychas, meaning “allies” or “friends”. This word came to be spelled "Texas" in old Spanish in which the “x” is substituted for a “j” sound.
From this mistaken tribal name the land derived it’s name.
“Lone Star” – T.R. Fehrenbach [para]
So when people say that "Texas" came from the Indian word for "friends" that's only partially right.
It's really of Spanish derivation.
