Austrian ornately dressed (8)
I believe the answer is:
tyrolean
'austrian' is the definition.
(someone from Tyrol in Austria)
'ornately dressed' is the wordplay.
'dressed' indicates anagramming the letters ('dress' can mean 'prepare').
'ornately' is an anagram of 'TYROLEAN'.
(Other definitions for tyrolean that I've seen before include "Native of picturesque mountainous region of western Austria" , "Residing in Innsbruck" , "Of an Alpine district" , "European" , "from mountainous part of Europe" .)