Satan with aim to create island (8)
I believe the answer is:
tasmania
'island' is the definition.
(Tasmania is an example)
'satan with aim to create' is the wordplay.
'with' says to put letters next to each other.
'to create' indicates anagramming the letters.
'satan' after 'aim' is 'aimsatan'.
'aimsatan' anagrammed gives 'TASMANIA'.
(Other definitions for tasmania that I've seen before include "Pacific island" , "What a relief!" , "State off 23 [VICTORIA]" , "Antipodean island state" , "mountainous island" .)