Originally, lama is blessed with a place in Tibet (5)
I believe the answer is:
lhasa
'place in tibet' is the definition.
'originally lama is blessed with a' is the wordplay.
'originally' suggests taking the first letters.
'is blessed with' becomes 'has' (I've seen this in another clue).
The initial letter of 'lama' is 'l'.
'l'+'has'+'a'='LHASA'
(Other definitions for lhasa that I've seen before include "Tibetan capital" , "Tibetan holy city" , "Capital of Tibet" , "foreign capital" , "The Forbidden City in Tibet" .)