Etymology
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bluegrass (n.)

also blue-grass, music style, 1958, in reference to the Blue Grass Boys, country music band 1940s-'50s, from the "blue" grass (Poa pratensis) characteristic of Kentucky. The grass so called from 1751; Kentucky has been the Bluegrass State at least since 1872; see blue (adj.1) + grass.

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Definitions of bluegrass
1
bluegrass (n.)
any of various grasses of the genus Poa;
Synonyms: blue grass
bluegrass (n.)
a type of country music played at a rapid tempo on banjos and guitars;
2
Bluegrass (n.)
an area in central Kentucky noted for its bluegrass and thoroughbred horses;
Synonyms: Bluegrass Country / Bluegrass Region
From wordnet.princeton.edu