Nicknames do not show up on incoming calls even when “short names” and “prefer nicknames” are on from settings->contacts->short name

Hi palashs,

Thanks for coming to Apple Support Communities for help today with Nicknames for your Contacts. It sounds like they aren't showing up for incoming calls.

Take a look at this page: About Short Name on iPhone, iPad, and iPod touch. Have you added the Nickname to your Contact? This isn't something that would be controlled on their end.

"Contacts are listed with First, Last, and Company fields, but you can add a Nickname field. If you have Prefer Nicknames on and the contact has a nickname, you'll see the nickname entry.

To add a nickname:

1. Open the Phone app and tap Contacts.
2. Tap the contact you want to view, then tap Edit.
3. Scroll down and tap add field > Nickname.
4. Add a nickname and tap Done."

Try toggling setting Prefer Nickname off and on if the issue is still ongoing. Restarting in combination with this step may also be helpful.

Let us know how it goes.

Have a fantastic day!