Set meal prepared for islanders (7)
I believe the answer is:
maltese
'islanders' is the definition.
(I've seen this before)
'set meal prepared' is the wordplay.
'prepared' indicates anagramming the letters.
'set'+'meal'='setmeal'
'setmeal' anagrammed gives 'MALTESE'.
'for' acts as a link.
(Other definitions for maltese that I've seen before include "Nationality of citizen of Valletta" , "From Valletta, perhaps" , "Pigeon" , "Description of cross" , "Steal me for Mediterranean islander" .)