Grisly means gruesome or horrifying — a grisly discovery. Grizzly means streaked with grey, and names the North American bear whose grey-tipped fur gave it the word. A grisly bear would be a gruesome one; a grizzly bear is grey-flecked.
The core difference
Horror and greyness, joined only by sound.
- grisly — gruesome: grisly details.
- grizzly — grey-flecked; the bear: a grizzly bear.
A third word
Gristly — full of gristle, as in tough meat — is a further near-homophone with a T. Three similar words, three unrelated meanings, and only the middle one is a bear.
The bear's name
Grizzly is from grizzled, meaning grey-haired, describing the pale-tipped guard hairs. The scientific name Ursus arctos horribilis supplies the fearsome part separately.