Look around university for thin fabric (5)
I believe the answer is:
gauze
'thin fabric' is the definition.
(type of fabric)
'look around university' is the wordplay.
'look' becomes 'gaze' (gazing is a kind of looking).
'around' is an insertion indicator.
'university' becomes 'u' (abbreviation for university).
'gaze' enclosing 'u' is 'GAUZE'.
'for' acts as a link.
(Other definitions for gauze that I've seen before include "Medicinal cloth" , "Thin, transparent fabric" , "Cloth for bandage" , "Thin bleached cotton cloth used for dressings etc" , "Thin woven material used in bandages" .)