Yes, rye is a Scrabble word!
...and is worth 6 points in Scrabble, and 5 points in Words with Friends
rye
Noun
1. The seed of the cereal grass
2. Hardy annual cereal grass widely cultivated in northern Europe where its grain is the chief ingredient of black bread and in North America for forage and soil improvement
3. Whiskey distilled from rye or rye and malt
What Scrabble words can I make with the letters in rye?
2 Letter Words