Celebration of the flesh embracing naked diva (8)
I believe the answer is:
carnival
'celebration' is the definition.
(carnival is a kind of celebration)
'of the flesh embracing naked diva' is the wordplay.
'of the flesh' becomes 'carnal' (I've seen this before).
'embracing' means one lot of letters goes inside another.
'naked' says to take the centre.
The central letters of 'diva' are 'iv'.
'carnal' enclosing 'iv' is 'CARNIVAL'.
(Other definitions for carnival that I've seen before include "Public celebration with processions, music, etc" , "Festivities and public merry-making" , "Meddle" , "Festival of merrymaking and processions" , "Public merrymaking, usually with procession" .)