Old stringed instrument storyteller talked of (4)
I believe the answer is:
lyre
'old stringed instrument' is the definition.
(I've seen this before)
'storyteller talked of' is the wordplay.
'storyteller' becomes 'liar' (I've seen this before).
'talked of' shows a homophone (sound like).
'liar' is a homophone of 'LYRE'.
(Other definitions for lyre that I've seen before include "Type of harp" , "Music-maker" , "Early harp" , "used to produce music" , "Ancient Greek stringed instrument" .)