Oh dear, rejected embracing bad actor in soap! (7)
I believe the answer is:
shampoo
'soap' is the definition.
(I have seen 'Liquid soap' mean 'shampoo' so perhaps 'soap' could also mean 'shampoo')
'oh dear rejected embracing bad actor' is the wordplay.
'oh dear' becomes 'oops' (I've seen this before).
'rejected' says the letters should be written in reverse.
'embracing' means one lot of letters goes inside another.
'bad actor' becomes 'ham' (I've seen this before).
'oops' in reverse letter order is 'spoo'.
'spoo' going around 'ham' is 'SHAMPOO'.
'in' acts as a link.
(Other definitions for shampoo that I've seen before include "Ooh, spam! (anag.)" , "Hair cleanser" , "lather" , "Hair wash preparation" , "people get set after it" .)