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Yes, teddy is a Scrabble word!
...and is worth 10 points in Scrabble, and 9 points in Words with Friends
1. Plaything consisting of a child's toy bear (usually plush and stuffed with soft materials)
2. A woman's sleeveless undergarment
What Scrabble words can I make with the letters in teddy?
4 Letter Words
3 Letter Words
2 Letter Words