The municipality (originally the parish) is named after the old Slidre farm (Old Norse: SlíÕrar), since the first church was built here. The name is probably derived from slíõr which means "sheath" (which is probably referring to a long depression near the church). The meaning of the name Øystre Slidre is "(the) eastern (part of) Slidre" (since the parish and municipality of Slidre was divided in 1849.)