Fine judge hosted by two Pacific islands (4)
I believe the answer is:
fiji
'pacific islands' is the definition.
(I've seen this before)
'fine judge hosted by two' is the wordplay.
'fine' becomes 'f' (abbreviation).
'judge' becomes 'j' (abbreviation for judge).
'hosted by' is an insertion indicator.
'two' becomes 'II' (Roman numerals).
'j' going into 'ii' is 'iji'.
'f'+'iji'='FIJI'
(Other definitions for fiji that I've seen before include "South Pacific republic, capital Suva" , "South Pacific republic of 844 islands" , "Pacific island republic" , "Pacific member of the British Commonwealth" , "Country of many islands" .)