Guiding light from church on hill (5)
I believe the answer is:
torch
'guiding light' is the definition.
(light guiding someone's way)
'church on hill' is the wordplay.
'church' becomes 'ch' (common abbreviation).
'on' means one lot of letters go next to another.
'hill' becomes 'tor' (tor is a kind of hill).
'ch' put after 'tor' is 'TORCH'.
'from' acts as a link.
(Other definitions for torch that I've seen before include "Portable lamp; set alight" , "Light carried in the hand" , "Set fire to - hand-held light" , "Set fire to (something)" , "A large candle" .)