Cocoon dwellers (5)
I believe the answer is:
pupae
'cocoon dwellers' is the definition.
(I've seen this in another clue)
This is the entire clue.
(Other definitions for pupae that I've seen before include "Insects in form between larvae and adults" , "Chrysalises" , "Insects in the inactive stage of development" , "Insects between larval and adult stages" , "Insects in the stage between larva and adult" .)