Dame from down under embraced by returning wanderer (4)
I believe the answer is:
edna
'dame from down under' is the definition.
(I've seen this in another clue)
'embraced by returning wanderer' is the wordplay.
'returning' is a reversal indicator.
'embraced by' indicates a hidden word (surrounding letters embrace the answer).
'ande' is hidden in the letters of 'wanderer'.
'ande' backwards is 'EDNA'.
(Other definitions for edna that I've seen before include "Female name" , "Girl's name; Dane (anag.)" , ". . . . O'Brien, ... Saint Vincent Millay" , "___ O'Brien, Irish novelist, b. 1930" , "Female Dane, oddly" .)