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Yes, okay is a Scrabble word!
...and is worth 11 points in Scrabble, and 10 points in Words with Friends
1. In a satisfactory or adequate manner; (`alright' is a nonstandard variant of `all right')
1. Give sanction to
1. Being satisfactory or in satisfactory condition
1. An endorsement
What Scrabble words can I make with the letters in okay?
4 Letter Words
3 Letter Words
2 Letter Words