Displayed by father with terrible dread (7)
I believe the answer is:
paraded
'displayed' is the definition.
Although both the answer and definition are past participle verbs, I cannot see how they can define each other.
'father with terrible dread' is the wordplay.
'father' becomes 'pa' (pa can mean dad or father).
'with' is a charade indicator (letters next to each other).
'terrible' is an anagram indicator.
'dread' is an anagram of 'raded'.
'pa'+'raded'='PARADED'
'by' is the link.
Can you help me to learn more?
(Other definitions for paraded that I've seen before include "being put on show" , "Showed off in military style" .)