"oriental water pipe for smoking," by 1820, from French narghileh, from Persian nargileh, from nargil "cocoa-nut," of which the bowl was originally made. The Persian word is probably from Sanskrit narikerah, which may be from a Dravidian source.
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Definitions of narghile from WordNet
narghile (n.)
an oriental tobacco pipe with a long flexible tube connected to a container where the smoke is cooled by passing through water;