Dancing fish entertained by band (7)
I believe the answer is:
reeling
'dancing' is the definition.
(I've seen this before)
'fish entertained by band' is the wordplay.
'fish' becomes 'eel' (eel is a type of fish).
'entertained by' indicates putting letters inside (inserted letters are hosted or entertained).
'band' becomes 'ring' (a ring is a band of metal).
'eel' going inside 'ring' is 'REELING'.
(Other definitions for reeling that I've seen before include "Feeling bewildered and giddy" , "Swimming" , "Unable properly to control one's movements" , "may be off-balance" , "Punchy" .)