Island place (5)
I believe the answer is:
islay
'island place' is the definition.
(Scottish island)
'island place' is the wordplay.
'island' becomes 'is' (abbreviation).
'place' becomes 'lay' (synonyms).
'is'+'lay'='ISLAY'
(Other definitions for islay that I've seen before include "Isle known for distilleries" , "Scottish island" , "Argyll island" , "Island of the Inner Hebrides" , "part of the Hebrides" .)