Island friend keeps it for parrot (7)
I believe the answer is:
imitate
'parrot' is the definition.
(I've seen this in another clue)
'island friend keeps it' is the wordplay.
'island' becomes 'i'.
'friend' becomes 'mate' (mate is a kind of friend).
'keeps' means one lot of letters goes inside another.
'mate' going around 'it' is 'mitate'.
'i'+'mitate'='IMITATE'
'for' acts as a link.
(Other definitions for imitate that I've seen before include "I tame it to copy it" , "'Ape, copy (7)'" , "Copy (mannerisms)" , "Parrot" , "I ate Tim! (anag.)" .)