Capricornus, which is Latin for "horned goat," is one of the original 48 constellations laid down by the Greek astronomy Ptolemy. Although its name makes no reference to a "sea goat," it has consistently been represented as a sea goat throughout time. The Babylonians saw Capricornus as a hybrid of a goat and a fish symbolizing their god Ea.

In Greek Mythology, the constellation is identified as Amalthea, the goat that suckled the infant Zeus after his mother Rhea saved him from being eaten by his father, Cronus. It could also be Pan, who saved himself from the monster Typhon by giving himself a fish's tail and diving into a nearby river.

In order of brightness, the named stars are:

Deneb Algedi (δ Capricorni), a binary star system about 39 light years from Earth. The two components are both blue-white giant stars. Its name comes from the Arabic ðanab al-jady meaning "the tail of the goat," marking its place in Capricornus.

Dabih (β Capricorni) is a multiple star system about 390 light years away. It consists of five stars, one of which is an orange supergiant, while at least two others are blue giant stars. The name comes from the Arabic al-dhābiḥ meaning "the butcher."

Algedi (α Capricorni) is a triple star system about 102 light years away. The primary star is a yellow giant star. The name comes from the Arabic al-jadii meaning "the goat."

Nashira (γ Capricorni) is a solitary yellow-white giant star about 171 light years away. Its name comes from the Arabic sa'd nashirah meaning "the lucky one."