Island trauma's resolved (7)
I believe the answer is:
sumatra
'island' is the definition.
(I know that Sumatra is a island)
'trauma's resolved' is the wordplay.
'resolved' indicates an anagram.
'traumas' anagrammed gives 'SUMATRA'.
(Other definitions for sumatra that I've seen before include "Eastern island" , "part of Indonesia" , "island in Indian ocean" , "Island in western Indonesia" , "Second largest Indonesian island" .)