Yes, muds is a Scrabble word!
...and is worth 7 points in Scrabble, and 9 points in Words with Friends
muds
Verb
1. Soil with mud, muck, or mire
2. Plaster with mud
Noun
1. Water soaked soil; soft wet earth
2. Slanderous remarks or charges
What Scrabble words can I make with the letters in muds?
3 Letter Words
2 Letter Words