A room for medal (5)
I believe the answer is:
award
'medal' is the definition.
(I've seen this before)
'a room' is the wordplay.
'room' becomes 'ward' (I've seen this before).
'a'+'ward'='AWARD'
'for' acts as a link.
(Other definitions for award that I've seen before include "Decoration" , "Maybe damages" , "medal, perhaps" , "E.g. Oscar" , "Allotment" .)