March around island utopia (8)
I believe the answer is:
paradise
'utopia' is the definition.
(I've seen this before)
'march around island' is the wordplay.
'march' becomes 'parade' (synonyms).
'around' is an insertion indicator.
'island' becomes 'is' (abbreviation).
'parade' going around 'is' is 'PARADISE'.
(Other definitions for paradise that I've seen before include "Scene of bliss" , "Sensual garden" , "one enjoyed before the fall" , "blissful place?" , "Happiness" .)