The genus name Nebulasaurus, means "misty cloud lizard", and is derived from the Latin word nebulae meaning "misty cloud", a reference to “Yunnan” which means “southern misty cloudy province” and the Greek word "sauros" (σαυρος) meaning "lizard"[2] The specific name ‘’taito’’, was given in honor of the Taito Corporation of Japan, which funded the field project and is geographically near the discovery site. Nebulasaurus was described and named by Lida Xing, Tetsuto Miyashita, Philip J. Currie, Hailu You, and Zhiming Dong in 2015 and the type species is Nebulasaurus taito.