Yes, terry is a Scrabble word!
...and is worth 8 points in Scrabble, and 7 points in Words with Friends
terry
Noun
1. English actress (1847-1928)
2. A pile fabric (usually cotton) with uncut loops on both sides; used to make bath towels and bath robes
What Scrabble words can I make with the letters in terry?
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1 Anagram of Terry
Words that can be created with an extra letter added to terry:
A:artery