Head-word of the six-fold synonym set for 'star'. The lexicon treats nakṣatra, ṛkṣa, bha, tārā, tārakā and uḍu as fully interchangeable — which is why the separate entries for Ṛkṣāḥ and the rest form one lexical family. Yāska's Nirukta 3.20 supplies the oldest etymology: from the root nakṣ 'to go', with the alternative Brāhmaṇa pun na imāni kṣatrāṇi.
नक्षत्रम् Nakṣatra
star / asterism (generic) · — · —
In the living languages
The lunar mansions as a system (69 names), Nakṣatra (star / asterism (generic)) (1 names)
Attestations
Devanāgarī from Sanskrit Wikisource. IMPORTANT COLLATION: GRETIL's Kāśikā-derived text prints 'nakṣatreṇa yuktaṃ kālaḥ', with a neuter yuktaṃ that does not agree with the masculine kālaḥ; GRETIL's independent 'alt' text and the Wikisource Devanāgarī both read yuktaḥ, which is the standard and grammatically correct form. I have quoted the correct reading and flag the Kāśikā-file variant here.
The key structural finding for the whole source. Nakṣatra is a FORMAL GRAMMATICAL CATEGORY in the Aṣṭādhyāyī, invoked as a condition in nine of Pāṇini's own sūtras: 1.2.60 (…ca nakṣatre), 1.2.63 (nakṣatra-dvandve), 2.3.45 nakṣatre ca lupi, 3.1.116 (…nakṣatre), 4.2.3 nakṣatreṇa yuktaḥ kālaḥ, 4.3.16 (…ṛtu-nakṣatrebhyo 'ṇ), 4.3.37 nakṣatrebhyo bahulam, 4.4.141 nakṣatrād ghaḥ, and 6.3.75 (in a phonological list). 4.2.3 is the head-sūtra of the whole nakṣatra section and is explicitly ASTRONOMICAL in its content: it derives a time-word from an asterism name when the time is 'joined with' that asterism — which the tradition, from the Kāśikā onwards, glosses as the moon's conjunction with it. The database currently dates nakṣatra as a term from the Amarakośa and Nirukta; this is earlier and better dated. Also relevant: Kātyāyana's vārttika on 2.2.34 speaks of ṛtu-nakṣatrāṇām 'of seasons and asterisms' as a single class with a canonical order, and Patañjali on 1.2.63 asks nakṣatra iti kimartham 'what is the purpose of [the word] nakṣatra?' — treating it as a technical restriction distinguishing star-senses from homonymous personal names.