From the Dictionary.com Web Site:

The free Dictionary.com app delivers world-class reference content from Dictionary.com and Thesaurus.com including more than 275,000 definitions and 80,000 synonyms. The app also features audio pronunciations, similarly spelled words and Dictionary.com’s popular Word of the Day that is enjoyed by more than a million users.

Teleread points out that this app works even if you don’t have an Internet connection.

The App Features:

+ Alphabetical indexing
+ Similarly spelled words
+ Spelling and audio pronunciation
+ Example sentences
+ Non-standard uses
+ Word origin and history

Source: Dictionary.com (via Teleread)

See Also: Merriam-Webster Dictionary for iPhone
Note: This tool does require an Internet connection.

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