Island of irrational traumas (7)
I believe the answer is:
sumatra
'island' is the definition.
(Sumatra is an example)
'irrational traumas' is the wordplay.
'irrational' indicates anagramming the letters.
'traumas' anagrammed gives 'SUMATRA'.
'of' acts as a link.
(Other definitions for sumatra that I've seen before include "Some land" , "Eastern island" , "island in Indian ocean" , "Large Indonesian island" , "A US mart on an Indonesian island?" .)