Yes, wool is in the scrabble dictionary

...and is worth 8 points by itself if you played it.

Wool Definition

noun

A filamentous or fibrous covering or substance suggestive of the texture of true wool.
A material or garment made of this hair.
The dense, soft, often curly hair forming the coat of sheep and certain other mammals, such as the goat and alpaca, consisting of cylindrical fibers of keratin covered by minute overlapping scales and much valued as a textile fabric.
The furry hair of some insect larvae, such as the caterpillar.
The soft wavy or curly usually thick undercoat of various hairy mammals and especially the sheep made up of a matrix of keratin fibers and covered with minute scales.