Romeo's first embraced by parents in Italian city (5)
I believe the answer is:
parma
'italian city' is the definition.
(I've seen this before)
'romeo's first embraced by parents' is the wordplay.
'romeo's first' becomes 'r' (1st letter of 'romeo').
'embraced by' means one lot of letters goes inside another.
'parents' becomes 'pama' (Pa and Ma).
'r' inserted inside 'pama' is 'PARMA'.
'in' is the link.
(Other definitions for parma that I've seen before include "Italian city famous for cheese and ham" , "Italian city known for ham and violets" , "Here in Italy" , "Italian city producing cured ham" , "Source of ham and cheese" .)