Country fellows settling in a sort of valley (7)
I believe the answer is:
armenia
'country' is the definition.
(I've seen this before)
'fellows settling in a sort of valley' is the wordplay.
'fellows' becomes 'men' (I've seen this before).
'settling in' indicates putting letters inside.
'sort of valley' becomes 'ria'.
'a'+'ria'='aria'
'men' going within 'aria' is 'ARMENIA'.
(Other definitions for armenia that I've seen before include "Former Soviet republic of south-east Europe, capital Yerevan" , "Landlocked country south of Georgia" , "Republic formerly in the USSR" , "Transcaucasian nation" , "Republic east of Black Sea bordering Turkey, capital Yerevan" .)