Dream of small sailor with fixed look (8)
I believe the answer is:
stargaze
'dream' is the definition.
('stargaze' can be a synonym of 'dream')
'small sailor with fixed look' is the wordplay.
'small' becomes 's' (abbreviation - e.g. clothes size).
'sailor' becomes 'tar' (tar is a kind of sailor).
'with' means one lot of letters go next to another.
'fixed look' becomes 'gaze' (I've seen this before**).
's'+'tar'+'gaze'='STARGAZE'
'of' is the link.
(Other definitions for stargaze that I've seen before include "Study horoscope" , "Watch the sky" , "Observe the sky at night" , "Daydream" , "Watch the heavens" .)