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Scrappy allows the wielder's Fighting- and Normal-type moves to hit Ghost-types. Fighting- and Normal-type moves from a Pokemon with Scrappy are considered neutrally effective, and still take secondary type resistances into account (for example, Fighting-type moves from a Pokemon with Scrappy are not very effective against Drifblim and Gengar).
Scrappy is a good ability, but nothing can really take advantage of it in the upper tiers. Miltank and Kangaskhan can be usable Pokemon but Snorlax generally outperforms both of them. Other Pokemon that Scrappy is available to, such as Swellow, would much rather have Guts than Scrappy, so it doesn't see much use in the upper tiers.
Found in Dream World