Allegorical story of Scotsman dividing pasty (7)
I believe the answer is:
parable
'allegorical story' is the definition.
(I've seen this in another clue)
'scotsman dividing pasty' is the wordplay.
'scotsman' becomes 'Rab' (Rab is a Scottish name).
'dividing' is an insertion indicator (inserted letters divide the word).
'pasty' becomes 'pale' (synonyms).
'rab' inserted inside 'pale' is 'PARABLE'.
'of' is the link.
(Other definitions for parable that I've seen before include "Meaningful story" , "Moral-carrying story" , "Exemplum" , "Story illustrating moral lesson" , "Instructive story" .)