A humorous borrowing of the Spanish word for "occupied," used in American English — usually with a smirk — to announce that a toilet stall or room is taken. The joke works on multiple levels: it sounds more sophisticated than yelling "someone's in here," and it pokes gentle fun at the Spanglish that peppers American culture. You'll hear it as a one-word punchline, a door-knocker reply, or just a way to make a mundane situation feel vaguely exotic.
He knocked on the stall door and I just shouted back "ocupado!" and hoped for the best.
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(US, humorous) Occupied (said of a toilet stall).
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