The paper focuses on the general problems of ethnic and linguistic contacts, and their impact on toponymic systems. To illustrate these, the author uses empirical evidence from medieval Hungarian charters originating from the Carpathian Basin, and touches upon some later language contacts in the same area. The guiding principle of the paper is provided by the topics included in the title. First, it discusses the notion of linguistic prestige and its interpretation with regard to toponyms and the linguistic situation of the medieval Carpathian Basin. The author showcases that linguistic prestige played a significant role both in toponym borrowing and toponym use, so as it influenced the practice of medieval charter writing. Secondly, the paper highlights some of the general theoretical considerations of name-giving and toponym use which are closely related to the issue at hand. These refer to the nature of relations between toponyms and culture, as well as toponyms and identity. Finally, it investigates the phenomenon of toponym borrowing and name integration, while outlining a possible model of toponomastic analysis in relation to the latter. This model provides both a descriptive (synchronic) and historical (diachronic) framework for studying toponym pairs of different languages at different stages of name integration. The author proposes a functional approach to this model through the analysis of Hungarian–German toponym pairs, but due to its universal categories, this theoretical framework is applicable to any two languages in contact and any historical periods.