Stone on terrace damaged tram
I believe the answer is:
streetcar
'tram' is the definition.
('streetcar' can be a synonym of 'tram')
'stone on terrace damaged' is the wordplay.
'stone' becomes 'st'.
'on' means one lot of letters go next to another.
'damaged' indicates an anagram.
'terrace' anagrammed gives 'reetcar'.
'st'+'reetcar'='STREETCAR'
(Other definitions for streetcar that I've seen before include "Tennessee Williams play 'A . . . . . . . . . Named Desire'" , "North American name for a tram" , "US tram (named Desire?)" , "public transport?" , "Desire, perhaps" .)