Lizard skin handbag, a marvel! (5)
I believe the answer is:
agama
'lizard' is the definition.
(agama is a kind of lizard)
'skin handbag a marvel' is the wordplay.
'AGAMA' is hidden within the letters.
However, I am not sure how this is indicated.
Can you help me to learn more?
(Other definitions for agama that I've seen before include "Small terrestrial Old World lizard" , "Reptile" .)