Ancient region on the Adriatic Sea that includes parts of present-day Montenegro, Albania and Croatia (7)
I believe the answer is:
illyria
(Other definitions for illyria that I've seen before include "Classical Albania" , "Country of "Twelfth Night"" , "setting at start of Twelfth Night" , "ancient European state" , "Adriatic coastal area, scene of Twelfth Night" .)