Made out with king in fantasy (5)
I believe the answer is:
dream
'fantasy' is the definition.
(I know that dream is a type of fantasy)
'made out with king' is the wordplay.
'out with' is an anagram indicator (out can mean wrong or inaccurate).
'king' becomes 'R' (abbreviation for rex, king in Latin).
'made' with its letters mixed up with 'r' makes 'DREAM'.
'in' acts as a link.
(Other definitions for dream that I've seen before include "Reverie or nightmare" , "Cherished hope or ideal" , "dozy state" , "Sleeping thoughts" , "Illusion" .)