Yes, medusa is in the scrabble dictionary

...and is worth 11 points by itself.

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Medusa Definition

noun

The tentacled, usually bell-shaped, free-swimming sexual stage in the life cycle of a coelenterate, such as a jellyfish.
from The American Heritage Dictionary of the English Language, 4th Edition
A mortal Gorgon who is slain when decapitated by Perseus.
from Free Scrabble Dictionary

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Top Words by points

Points

amused

9

2 letter words with MEDUSA

Points

ae

2

ma

4

me

4

mu

4

es

2

em

4

ed

3

ad

3

de

3

am

4

as

2

us

2

um

4

da

3

3 letter words with MEDUSA

Points

med

6

mae

5

mad

6

use

3

ums

5

mas

5

mud

6

mus

5

sad

4

sae

3

sau

3

sea

3

sue

3

sum

5

emu

5

ems

5

eds

4

eau

3

ads

4

amu

5

dum

6

due

4

das

4

dam

6

4 letter words with MEDUSA

Points

dame

7

used

5

sade

5

same

6

seam

6

sued

5

amus

6

emus

6

muse

6

duma

7

muds

7

mesa

6

meds

7

mead

7

maud

7

dues

5

maes

6

mads

7

made

7

dams

7

5 letter words with MEDUSA

Points

mauds

8

dumas

8

dames

8

amuse

7

sedum

8

mused

8

meads

8

6 letter words with MEDUSA

Points

amused

9

medusa

9

Found 67 words in 0.20429 seconds