Dwarf with odd skin mostly raises family (15)
I believe the answer is:
rumpelstiltskin
'dwarf' is the definition.
(fairy tale character)
'with odd skin mostly raises family' is the wordplay.
'with odd' becomes 'rum' (rum can mean strange or dubious. I am not sure about the 'with' bit.).
'skin' becomes 'pelt' (an animal's skin).
'mostly' means to remove the last letter.
'raises' becomes 'stilts' (stilt can mean to raise on stilts).
'family' becomes 'kin' (synonyms).
'pelt' with its last letter taken away is 'pel'.
'rum'+'pel'+'stilts'+'kin'='RUMPELSTILTSKIN'
(Other definitions for rumpelstiltskin that I've seen before include "wee chap" , "Character from fairy tale" , "Fairytale character (Grimm)" , "Mischief-maker" , "Impish type" .)