Lady found ousel fluttering round island (6)
I believe the answer is:
louise
'lady' is the definition.
'ousel fluttering round island' is the wordplay.
'fluttering' indicates anagramming the letters.
'round' indicates putting letters inside.
'island' becomes 'i'.
'ousel' is an anagram of 'louse'.
'louse' placed around 'i' is 'LOUISE'.
'found' acts as a link.
(Other definitions for louise that I've seen before include "Sue, oil up the other girl" , "waitress in road movie" .)