Does Islam mean peace?

Islam means to submit to the will of God (Allah). It comes from the term "aslama", which means "to surrender" or "resign oneself".

The Arabic word salaam (سلام) ("Peace") has the same root (s-l-m) as the word Islam. One Islamic interpretation is that individual personal peace is attained by utterly submitting to God. [Source:]

See this corpus to know more about the derivatives of the root letters (slm) of Islam.