Short entertaining story (8)
I believe the answer is:
anecdote
'short entertaining story' is the definition.
(I've seen this before)
This is the entire clue.
(Other definitions for anecdote that I've seen before include "Reminiscence, story" , "Short entertaining story" , "One acted (anag) - amusing reminiscence" , "Yarn" , "One acted over interesting story" .)