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Yes, terry is in the scrabble dictionary

...and is worth 7 points by itself.

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Terry Definition

noun

A pile fabric, usually woven of cotton, with uncut loops on both sides, used for bath towels and robes. Also called terry cloth.
from The American Heritage Dictionary of the English Language, 4th Edition
One of the uncut loops that form the pile of a fabric.
from The American Heritage Dictionary of the English Language, 4th Edition
The loop forming the pile in uncut pile fabrics.
from Free Scrabble Dictionary
An absorbent fabric with such loops .
from Free Scrabble Dictionary

biographical name

(Alice) Ellen 1847–1928 Eng. actress.
from Free Scrabble Dictionary

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Top Words by points

Points
retry

8

2 letter words with TERRY

Points

er

2

et

2

re

2

te

2

ye

5

3 letter words with TERRY

Points

err

3

ret

3

rye

6

try

6

tye

6

yet

6

4 letter words with TERRY

Points

trey

7

tyer

7

tyre

7

5 letter words with TERRY

Points

retry

8

terry

8

Found 16 words in 0.14811 seconds