A point south of friend on a hill (8)
I believe the answer is:
palatine
'hill' is the definition.
(I've seen this before)
'a point south of friend' is the wordplay.
'point' becomes 'tine' (I've seen this in other clues).
'south of' means one lot of letters go next to another (in a down clue, some letters go under others).
'friend' becomes 'pal' (pal can mean a friend).
'a'+'tine'='atine'
'atine' after 'pal' is 'PALATINE'.
'on a' is the link.
(Other definitions for palatine that I've seen before include "One of the seven hills of Rome" , "Hill" , "Having royal privileges" .)