Island where sweet thing faces giant of the ocean (7)
I believe the answer is:
majorca
'island' is the definition.
(Majorca is a Spanish island)
'sweet thing faces giant of the ocean' is the wordplay.
'sweet thing' becomes 'jam' (jam is sweet).
'faces' is a reversal indicator (some letters turn towards or face others).
'giant of the ocean' becomes 'orca' (orca is a term for the killer whale).
'jam' in reverse letter order is 'maj'.
'maj'+'orca'='MAJORCA'
'where' is the link.
(Other definitions for majorca that I've seen before include "Tourist destination" , "holiday destination ..." , "Mediterranean island" , "Holiday island" , "Palma its capital" .)