Country also in a muddle (4)
I believe the answer is:
laos
'country' is the definition.
(Laos is an example)
'also in a muddle' is the wordplay.
'in a muddle' indicates anagramming the letters.
'also' with letters rearranged gives 'LAOS'.
(Other definitions for laos that I've seen before include "SE Asian country" , "Republic in southeastern Asia" , "Country of SE Asia" , "Indo-Chinese country" , "Landlocked south-east Asian country" .)