Pal to arise, becoming knight (3)
I believe the answer is:
dub
'knight' is the definition.
(to dub can mean to knight someone)
'pal to arise' is the wordplay.
'pal' becomes 'bud'.
'to arise' is a reversal indicator (I've seen 'arising' mean this).
'bud' back-to-front is 'DUB'.
'becoming' acts as a link.
(Other definitions for dub that I've seen before include "Reggae" , "Knight; call" , "Give a name to" , "Label, name" , "Copy to tape or disc" .)