you didn't make a mistake and you shouldn't feel guilty. You had a completely different name picked out but when your baby girl was born, she made it clear that she wanted the name she has now. Sure, it is your MIL's name but your mom shouldn't be taking it as an insult to her. Your baby girl has TWO parents, both of whom have a mom. Her dad deserves to use his mom's name just as much as you deserve to use your mom's name.
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It is unfair for your mom to be so angry as to make you think you made a mistake. She is out of line. Its okay to be disappointed... but by being angry about your baby girl being named for her paternal grandma, your mom is insulting you as an adult and a mom able to make your own decisions for your child, she is insulting your husband for disregarding HIS family, and she is insulting your baby girl by insulting her parents and some of her grandparents. Your mom is trying to turn the birth of YOUR daughter who also happens to be your husband's daughter who also happens to be his mother's granddaughter into an issue about her.
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My mom spent most of my pregnancy joking about how my daughter's name had an extra name (her middle name) and it was annoying and got old fast but had we chosen to name her for my husband's mom, she wouldn't have said a thing. My child isn't just my child and isn't just her grandchild. My child has a whole extended family. So does yours.
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I can see how it hurts her, after all you came out of her and this little girl came out of you.. the line seems pretty concrete. It isn't worth getting into such a tizzy though. Especially not during a time where you just want to be happy and need to be as stress free as possible to care for your new little one.