Dawn and Susan eating near island (7)
I believe the answer is:
sunrise
'dawn' is the definition.
(I know that aurora can be written as sunrise)
'susan eating near island' is the wordplay.
'susan' becomes 'sue' (short for Susan).
'eating' indicates putting letters inside.
'near' becomes 'nr' (abbreviation used in addresses).
'island' becomes 'is' (abbreviation).
'nr'+'is'='nris'
'sue' going around 'nris' is 'SUNRISE'.
'and' is the link.
(Other definitions for sunrise that I've seen before include "Dawning of the day" , "Day's beginning" , "See 21" , "daily event" , "Tequila --, cocktail" .)