Etymology
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shaggy (adj.)

"rough, coarse, unkempt," 1590s, from shag (n.) + -y (2). Related: Shaggily; shagginess. Earlier was shagged, from Old English sceacgede "hairy;" compare Old Norse skeggjaðr, Danish skægget "bearded." The shaggy-dog story as a type of joke is attested from 1944, perhaps from vaudeville.

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Definitions of shaggy

shaggy (adj.)
used of hair; thick and poorly groomed;
a shaggy beard
Synonyms: bushy / shaggy-haired / shaggy-coated
shaggy (adj.)
having a very rough nap or covered with hanging shags;
shaggy rugs
Synonyms: shagged
From wordnet.princeton.edu