State regalia altered (7)
I believe the answer is:
algeria
'state' is the definition.
(Algeria is an example)
'regalia altered' is the wordplay.
'altered' is an anagram indicator.
'regalia' anagrammed gives 'ALGERIA'.
(Other definitions for algeria that I've seen before include "N. African country" , "North African republic" , "country in Africa" , "North African country" , "Land" .)