Entertained by palace, Lebedev is a VIP (5)
I believe the answer is:
celeb
'a vip' is the definition.
(I've seen this in another clue)
'entertained by palace lebedev is' is the wordplay.
'entertained by' says the answer is hidden in the clue (the clue hosts or entertains the answer).
'CELEB' is hidden within 'palace lebedev is'.
(Other definitions for celeb that I've seen before include ""Personality"" , "Famous person (sl.)" , "Famous person (abbr)" , "popular star" , "Prominent figure" .)