Country parrot seen round city (5)
I believe the answer is:
kenya
'country' is the definition.
(Kenya is an example)
'parrot seen round city' is the wordplay.
'parrot' becomes 'kea' (kea is a kind of parrot).
'seen round' indicates putting letters inside.
'city' becomes 'ny' (short for New York).
'kea' placed around 'ny' is 'KENYA'.
(Other definitions for kenya that I've seen before include "Its capital is Nairobi" , "E African country" , "East African nation" , "East African republic" , "Kikuyus' country" .)