Yes, crater is a Scrabble word!
...and is worth 8 points in Scrabble, and 9 points in Words with Friends
crater
Noun
1. A bowl-shaped geological formation at the top of a volcano
2. A faint constellation in the southern hemisphere near Hydra and Corvus
3. A bowl-shaped depression formed by the impact of a meteorite or bomb
What Scrabble words can I make with the letters in crater?
6 Letter Words
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