Damage found round oriental women's quarters (5)
I believe the answer is:
harem
'women's quarters' is the definition.
(I've seen this before)
'damage found round oriental' is the wordplay.
'damage' becomes 'harm' ('harm' can be a synonym of 'damage').
'found round' means one lot of letters goes inside another.
'oriental' becomes 'e'.
'harm' going around 'e' is 'HAREM'.
(Other definitions for harem that I've seen before include "Concubines living together" , "Living quarters of wives in a Muslim household" , "a number of wives" , "A lot of females" , "Her ma (anag)" .)