Yes, olive is a Scrabble word!
...and is worth 8 points in Scrabble, and 10 points in Words with Friends
olive
Adjective
1. Of a yellow-green color similar to that of an unripe olive
Noun
1. Small ovoid fruit of the European olive tree; important food and source of oil
2. Evergreen tree cultivated in the Mediterranean region since antiquity and now elsewhere; has edible shiny black fruits
3. Hard yellow often variegated wood of an olive tree; used in cabinetwork
4. One-seeded fruit of the European olive tree usually pickled and used as a relish
5. A yellow-green color of low brightness and saturation
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