This article is from the Miniatures Painting FAQ, by Brenda Klein tierna@agora.rdrop.com with numerous contributions by others.
Kitbashing is the colloquialism used by miniaturists to describe the
process by which a miniature is converted from its original form to
another permutation, such as taking a fantasy miniature and making
it into a figure for superhero roleplaying, or changing gender. Most
properly, it refers to the instances when two or more figures are used
for components in the final version.
 
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