You would be excused for thinking that Milford is a combination of two English words mill and ford but in fact it is a name which shows evidence of the Scandinavian presence in Pembrokeshire.
The Old Norse elements are melr (sand-hill, sand bank) and fjordr (fiord, inlet). The name Milford Haven therefore means 'harbour of the fiord by the sand bank'.
Early references of the name are to the harbour or haven not the modern town. Somewhat later, when the significance of fjordr in the name had been lost, Haven was added.
Aberdaugleddau is the Welsh name for Milford Haven.
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Nikki Bosworth explains the Viking origin of the name Milford Haven and the influence of the two Cleddau rivers on the Welsh name, Aberdaugleddau.
Related links
More on foreign influences on place names