Instrument viewed in kaleidoscopic colours (7)
I believe the answer is:
piccolo
'instrument' is the definition.
(piccolo is a kind of instrument)
'viewed in kaleidoscopic colours' is the wordplay.
'viewed in' indicates a hidden word.
'PICCOLO' is hidden within 'kaleidoscopic colours'.
(Other definitions for piccolo that I've seen before include "Part of 14 [ORCESTRA]" , "High wind instrument" , "Shrill woodwind instrument" , "Smallest of the flute family" , "Instrument (meaning "little")" .)