Story about animal noted for homecoming (6)
I believe the answer is:
lassie
'noted for homecoming' is the definition.
'story about animal' is the wordplay.
'story' becomes 'lie' (I've seen this before).
'about' means one lot of letters goes inside another.
'animal' becomes 'ass' (I've seen this before**).
'lie' placed around 'ass' is 'LASSIE'.
(Other definitions for lassie that I've seen before include "Canine film star" , "Screen canine" , "TV series/film dog" , "''Will ye go ..., go'' (folksong)" , "Screen mutt - Scottish girl" .)