A Royal in Canadian capital surrounded by a crowd (8)
I believe the answer is:
princess
'a royal' is the definition.
(princess is a kind of royal)
'in canadian capital surrounded by a crowd' is the wordplay.
'capital' indicates taking the first letters.
'surrounded by' is an insertion indicator.
'a crowd' becomes 'press' (to press can mean to crowd around).
The first letter of 'canadian' is 'c'.
'in'+'c'='inc'
'inc' inserted into 'press' is 'PRINCESS'.
(Other definitions for princess that I've seen before include "She's royal" , "Part of royalty" , "Attractive woman" , "Royal lady" , "Daughter of a sovereign" .)