Party held by the Italian star (4)
I believe the answer is:
idol
'star' is the definition.
(idol is a kind of star)
'party held by the italian' is the wordplay.
'party' becomes 'do' (do is a kind of party).
'held by' is an insertion indicator.
'the italian' becomes 'il' (the in Italian).
'do' placed inside 'il' is 'IDOL'.
(Other definitions for idol that I've seen before include "Graven image (sometimes false?)" , "Person who is the object of intense admiration as by fan club" , "Figure worshipped - sounds like someone in 7 8" , "A graven image or object of adoration" , "Superstar; graven image" .)