Bee and newt dancing in the middle (7)
I believe the answer is:
between
'in the middle' is the definition.
(I've seen this in another clue)
'bee and newt dancing' is the wordplay.
'and' means one lot of letters go next to another.
'dancing' indicates anagramming the letters.
'bee'+'newt'='beenewt'
'beenewt' is an anagram of 'BETWEEN'.
(Other definitions for between that I've seen before include "In the intervening space" , "Flanked" , "Amongst" , "In the middle (of)" , "In the interval" .)