Inn seen in souvenir from state without monarch (8)
I believe the answer is:
republic
'state without monarch' is the definition.
(I've seen this before)
'inn seen in souvenir' is the wordplay.
'inn' becomes 'pub' (both can mean a drinking establishment).
'seen in' means one lot of letters goes inside another.
'souvenir' becomes 'relic' (synonyms).
'pub' put into 'relic' is 'REPUBLIC'.
'from' acts as a link.
(Other definitions for republic that I've seen before include "The political system is an epic blur" , "Type of state" , "Country in which supreme power is held by the people" , "Nation with a president as head of state" , "Plato's ideal state" .)