Seeds eaten by parrot satisfy (7)
I believe the answer is:
appease
'satisfy' is the definition.
(appeasing is a kind of satisfying)
'seeds eaten by parrot' is the wordplay.
'seeds' becomes 'peas' (I have seen 'Edible seeds ' mean 'peas' so perhaps 'seeds' could also mean 'peas').
'eaten by' means one lot of letters goes inside another.
'parrot' becomes 'ape' (both can mean to imitate).
'peas' going inside 'ape' is 'APPEASE'.
(Other definitions for appease that I've seen before include "Placate (someone) by agreeing to their demands" , "Make calm by offering concessions" , "Satisfy demands by making concessions" , "Placate by giving in to demands" , "Placate (someone) with concessions" .)