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NPC naming has a constraint player-character naming does not: the party will meet dozens of them, often briefly, and needs to keep them straight. The most beautiful name is worthless if four sessions later everyone is calling him “the innkeeper guy.” Design for recall first.
Three rules do most of the work. Vary the opening sounds — a cast of Marcus, Mira, Merrin and Maldo will blur into one person. Keep incidental NPCs to one or two syllables and save longer, ornate names for figures who matter, so name length quietly signals importance. Attach one concrete detail to the name at the moment of introduction: Hal with the burned hand, Ospreys the ferryman. Players remember the pairing far better than either half alone.
A dockside labourer, a temple scribe and a minor baron should not draw from the same pool. Working names run short and trade-derived — Tam, Bett, Fletcher, Coll. Clerical names skew formal and often devotional — Brother Anselm, Sister Voray. Nobles get a house and usually a second given name. Keeping a consistent regional sound within one town, and shifting it in the next town over, makes travel feel real.
For an NPC who appears once, a name that carries its own hook is efficient: the Widow Ashcombe, Onehand Ivor, Merch the Younger. Each implies a history without a line of exposition, and if the party latches onto them, you have a recurring character for free.
The practical reality of running a game is being asked to name someone with no warning. Keeping a short list of unused names sorted by region and station — pulled ahead of the session — prevents the improvised name that sounds like a keyboard mash and has to be quietly retconned later.