Rest can transform dazes (7)
I believe the answer is:
trances
'dazes' is the definition.
(I've seen this in another clue)
'rest can transform' is the wordplay.
'transform' indicates an anagram.
'rest'+'can'='restcan'
'restcan' with letters rearranged gives 'TRANCES'.
(Other definitions for trances that I've seen before include "Recants (anag.)" , "what half-conscious people experience?" , "Hypnotic states" .)