Piece ragmen wrapped in paper (8)
I believe the answer is:
fragment
'piece' is the definition.
(fragment is a kind of piece)
'ragmen wrapped in paper' is the wordplay.
'wrapped in' indicates putting letters inside.
'paper' becomes 'ft'.
'ragmen' placed within 'ft' is 'FRAGMENT'.
(Other definitions for fragment that I've seen before include "Incomplete part" , "Broken-off piece" , "Come to pieces" , "Shard" , "Scrap" .)