Recline, tell stories, nap (3,4)
I believe the answer is:
lie down
'recline' is the definition.
(I've seen this in another clue)
'tell stories nap' is the wordplay.
'tell stories' becomes 'lie' (to tell stories is to lie or fib).
'nap' becomes 'down' (both can mean the material in pillows).
'lie'+'down'='LIE-DOWN'
(Other definitions for lie down that I've seen before include "Rest (with or without sleep)" , "Now idle (anag) -- short rest" , "Assume recumbent position" , "Take a rest (at length!)" , "Take to one's bed" .)