Probably does derive from faol "wolf". However, some other sources link it to faoileann "seagull". This was a common early name, borne by some 14 saints and by 10 of Fionn mac Cumhail's warriors, as well as by 3 Irish kings.
I love this name! It's quite uncommon, and it's Irish (I am fond of Irish names, for some reason). If I ever have a son, I am going to name him Faolan (of course, by the time he's in middle school, he'll probably want to kill me, because others might shorten it to 'Fay', which is a girls' name.)
I'm not certain, but from what I have learned about Gaelic pronunciation 'ao' makes an 'ee' sound and 'Á' with an accent over it would make an 'aw' sound. So wouldn't Faolan be pronounced fee-lawn?
It makes me think of a brave elf-prince warrior in a fantasy story (actually, that's the kind of character I'm using this name for in one of my stories). It sounds dark-green to me (if you can understand what hearing names in colors means).
I adore this name. It's cute enough for when they're young, but dignified enough to carry them through adulthood. I'd use it if my surname wasn't Phelan, which is an Anglicised form of this name!
I would pronounce it in a Japanese type of way. Like "FAHW-LAHN" Example: FAHW as in the way you'd say "Ow!". This will be my son's name, in the future of course!
Faolan is the main character in the Wolves of the Beyond series by Kathryn Lasky, a spinoff of the Guardians of Ga'Hoole series. He's a "cursed" wolf with mysterious powers that, after being abandoned, is raised by a bear named Thunderheart.