Frill displayed by honoured companion in Continental street (5)
I believe the answer is:
ruche
'frill' is the definition.
(I've seen this before)
'honoured companion in continental street' is the wordplay.
'honoured companion' becomes 'CH' (Companion of Honour).
'in' indicates putting letters inside.
'continental street' becomes 'rue' (French word for a street).
'ch' put within 'rue' is 'RUCHE'.
'displayed by' acts as a link.
(Other definitions for ruche that I've seen before include "Feature of fabric" , "Pleated frilling" , "lacy frill" , "Decorative pleated strip" , "Pleated gathering of fabric" .)