Why are planetary nebulae named after planets?

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Planetary nebulae are not related to planets; the name is a historical misnomer based on the limitations of 18th-century observational technology.

When these objects were first discovered in the late 1700s, astronomers used telescopes that lacked the resolution to reveal their true nature as expanding shells of luminous gas expelled by dying stars. Because these nebulae appeared as relatively round, compact, and disk-like shapes, they resembled the appearance of planets within the solar system when viewed through the instruments of that era.1

Despite the name, these objects are actually distinct from planets, representing a late stage in stellar evolution where a star sheds its outer layers into the interstellar medium.1