See Margherita perhaps when spending afternoon in this square (6)

I believe the answer is:

piazza

I'm a little stuck... Click here to teach me more about this clue!

'this square' is the definition.
(synonyms)

I don't understand how the remainder of the clue works.

(Other definitions for piazza that I've seen before include "Public square in Italian town" , "3 down" , "Where Italians may gather" .)

I've seen this clue in The Times and The Sunday Times.

Want a hint initially instead of a full solution? Install my app