Devotee stay dancing in pipe dream? (7)
I believe the answer is:
fantasy
'pipe dream?' is the definition.
(pipe dream is a kind of fantasy)
'devotee stay dancing in' is the wordplay.
'devotee' becomes 'fan' (synonyms).
'dancing' indicates an anagram.
'in' is an insertion indicator.
'stay' anagrammed gives 'tasy'.
'fan' inserted inside 'tasy' is 'FANTASY'.
(Other definitions for fantasy that I've seen before include "Imagination unrestricted by reality" , "Daydream, illusion or fancy" , "The imagining of what is impossible" , "Daydream, invention" , "Unrealistic dream" .)