Seen in Dalmatia rather small headdress (5)
I believe the answer is:
tiara
'headdress' is the definition.
(tiara is a kind of headdress)
I cannot understand how the remainder of the clue works.
Can you help me to learn more?
(Other definitions for tiara that I've seen before include "Ornamental crescent-shaped headdress or Pope's diadem" , "It bejewels" , "Ornamental headpiece" , "Half a crown!" , "Decorative headband" .)
