Meal cut out making peace pipe (7)
I believe the answer is:
calumet
'peace pipe' is the definition.
(synonyms)
'meal cut out' is the wordplay.
'out' indicates anagramming the letters (out can mean wrong or inaccurate).
'meal'+'cut'='mealcut'
'mealcut' with letters rearranged gives 'CALUMET'.
'making' acts as a link.
(Other definitions for calumet that I've seen before include "Cut meal (anag) - pipe of peace" , "Peace-pipe" .)