The way to embrace no good dance (5)
I believe the answer is:
tango
'dance' is the definition.
(Tango is a dance)
'the way to embrace no good' is the wordplay.
'the way' becomes 'tao' (I have seen 'religious way' mean 'tao' so perhaps 'way' could also mean 'tao').
'to embrace' is an insertion indicator.
'no good' becomes 'ng' (abbreviation).
'tao' placed around 'ng' is 'TANGO'.
(Other definitions for tango that I've seen before include "Argentine dance" , "Modern ballroom dance" , "T in radio alphabet" , "Dance of South American origin" , "One from Argentina" .)