This article addresses derivational issues related to palatalization in Khotanese, focusing on action nouns of the kīra- type (< *-i̯a-). It is argued that diachronic palatalization conforms to the rules of synchronic palatalization and that the origin of the hapax legomenon jsīna- “killing” (Z 13.124), which apparently violates these rules, needs to be interpreted differently. It is traced back to a reduplicated Indo-Iranian verbal stem *ǰa-ghn- (cf. Young Avestan jaɣn-) < Proto-Indo-European *gwhé-gwhn- “to strike repeatedly” → “to kill”. This stem is also reflected in the Khotanese gerundive jsīñaa- “to be killed” < *dzai̯n-i̯a- ← *dzaɣn- < Iranian *ǰa-gn-. The article contributes additional evidence supporting the development of the preconsonantal voiced velar fricative *ɣ into *i̯ in pre-Khotanese.