A Royal in Canadian capital surrounded by crowd (8)
I believe the answer is:
princess
'a royal' is the definition.
(princess is a kind of royal)
'in canadian capital surrounded by crowd' is the wordplay.
'capital' says to take the initial letters.
'surrounded by' means one lot of letters goes inside another.
'crowd' becomes 'press' (press is a kind of crowd**).
The initial letter of 'canadian' is 'c'.
'in'+'c'='inc'
'inc' going within 'press' is 'PRINCESS'.
(Other definitions for princess that I've seen before include "Female member of a royal family" , "Daughter of a monarch" , "A monarch's daughter" , "Attractive woman" , "Royal lady" .)