Native in tin hat surprisingly embracing sailor (10)
I believe the answer is:
inhabitant
'native' is the definition.
(thesaurus)
'in tin hat surprisingly embracing sailor' is the wordplay.
'surprisingly' indicates an anagram.
'embracing' indicates putting letters inside.
'sailor' becomes 'ab' (abbreviation for able seaman).
'in'+'tin'+'hat'='intinhat'
'intinhat' anagrammed gives 'inhitant'.
'inhitant' placed around 'ab' is 'INHABITANT'.
(Other definitions for inhabitant that I've seen before include "One who stays in" , "One living in a place" , "One occupying a place" , "Resident" .)