Country welcomed in dreamer -- I capitalized! (7)
I believe the answer is:
america
'country' is the definition.
(United States of America)
'welcomed in dreamer i capitalized' is the wordplay.
'welcomed in' indicates the answer is hidden within the clue.
'AMERICA' can be found hidden inside 'dreamer i capitalized'.
(Other definitions for america that I've seen before include "Race aim (anag)" , "North or South, it's a continent" , "Where's Virginia?" , "The superpower" , "huge landmass" .)