Alias mostly protecting outlaw in the country (7)
I believe the answer is:
albania
'country' is the definition.
(Albania is an example)
'alias mostly protecting outlaw' is the wordplay.
'mostly' means to remove the last letter.
'protecting' is an insertion indicator.
'outlaw' becomes 'ban' (banning is a kind of outlawing).
'alias' with its final letter taken away is 'alia'.
'alia' going around 'ban' is 'ALBANIA'.
'in the' acts as a link.
(Other definitions for albania that I've seen before include "Balkan country" , "State" , "Country W of Macedonia" , "Country of King Zog" , "Mediterranean country" .)