Yes, jello is a Scrabble word!
...and is worth 12 points in Scrabble, and 16 points in Words with Friends
jello
Noun
1. Fruit-flavored dessert (trade mark Jell-O) made from a commercially prepared gelatin powder
What Scrabble words can I make with the letters in jello?
4 Letter Words
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Words that can be created with an extra letter added to jello:
S:jellos