Lion's fame around island (4,2,3)
I believe the answer is:
isle of man
'island' is the definition.
(Isle of Man is an example)
'lion's fame around' is the wordplay.
'around' indicates anagramming the letters.
'lions'+'fame'='lionsfame'
'lionsfame' anagrammed gives 'ISLE OF MAN'.
(Other definitions for isle of man that I've seen before include "Here are Peel, Douglas" , "directed by Douglas" , "tax haven" , "Island in the Irish Sea" , "Its cats are said to be lacking tails" .)