Gracious ladies crossing wide street (7)
I believe the answer is:
heavens
'gracious' is the definition.
(both are expressions of surprise or shock)
'ladies crossing wide street' is the wordplay.
'ladies' becomes 'hens' (hen can informally mean a woman).
'crossing' indicates putting letters inside.
'wide street' becomes 'ave' (short for avenue).
'hens' placed around 'ave' is 'HEAVENS'.
(Other definitions for heavens that I've seen before include "Firmament, celestial sphere" , "Gosh!" , "Expression of astonishment" , "Goodness" , "Exclamation of surprise" .)