Hello i had a mole removed biopsy came back severely dysplastic. is it common for the pathologist to misread and it actually be melanoma? or is there a distinct difference?

Without seeing slide cannot comment. Your Dermatologist will also look at it I hope and see if they agree. Melanomas almost always have black stuff in them (melanin) and hard to miss.

Severe dysplasia buts you at risk for the mole degenerating into a melanoma. Therefore i would recommend complete excision of the mole if any mole was left behind after biopsy