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There are several explanations of the name Ilgen, but all have one thing in common: They go back to the given name Egidius with dialectal form like Gilles, Gilg, or Ilg. It could be a place name (near St. Ilgen chapel) or a patronymic (son of Ilg). In rare cases, other etymologies are possible, a derivation from feminine names like Ottilie or Hildegard; or a place name derived from Lilie "lily".

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If you can read German, here is a scholarly reference for Ilgen:

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Heuser, Rita, Ilgen, in: Digitales Familiennamenwörterbuch Deutschlands,
URL: < http://www.namenforschung.net/id/name/15619/1 >