What does PermGen actually stand for?

Permanent Generation. Details are of course implementation specific.

Briefly, it contains the Java objects associated with classes and interned strings. In Sun's client implementation with sharing on, classes.jsa is memory mapped to form the initial data, with about half read-only and half copy-on-write.

Java objects that are merely old are kept in the Tenured Generation.

PermGen is used by the JVM to hold loaded classes. You can increase it using:

-XX:MaxPermSize=384m

if you're using the Sun JVM or OpenJDK.

So if you get an OutOfMemoryException: PermGen you need to either make PermGen bigger or you might be having class loader problems.

Permanent Generation. See the java GC tuning guide for more details on the garbage collector.

PermGen stands for Permanent Generation.

Here is a brief blurb on DDJ

Permanent generation

If I remember correctly, the gen stands for generation, as in a generational garbage collector (that treats younger objects differently than mid-life and "permanent" objects). Principle of locality suggests that recently created objects will be wiped out first.

Permgen stands for Permanent Generation. It is one of the JVM memory areas. It's part of Heap with fixed size by using a flag called MaxPermSize.

Why the name "PermGen" ?

This permgen was named in early days of Java. Permgen mains keeps all the meta data of loaded classes. But the problem is that once a class is loaded it'll remain in the JVM till JVM shutdown. So name permgen is opt for that. But later, dynamic loading of classes came into picture but name was not changed. But with Java 8, they have addressed that issue as well. Now permagen was renamed as MetaSpace with dynamic memory size.