Land wearing regalia (7)
I believe the answer is:
algeria
'land' is the definition.
(Algeria is an example)
'wearing regalia' is the wordplay.
'wearing' indicates anagramming the letters (wear can mean to become damaged).
'regalia' is an anagram of 'ALGERIA'.
(Other definitions for algeria that I've seen before include "N. African state" , "North African republic" , "North-west African country" , "It lies between Morocco and Tunisia" , "Land" .)