Stream in The Queen — sensational story (8)
I believe the answer is:
thriller
'sensational story' is the definition.
(I've seen this before)
'stream in the queen' is the wordplay.
'stream' becomes 'rill' (rill is a kind of stream).
'in' indicates putting letters inside.
'queen' becomes 'r' (abbreviation for regina, e.g. in ER ).
'rill' put within 'the' is 'thrille'.
'thrille'+'r'='THRILLER'
(Other definitions for thriller that I've seen before include "Exciting novel or film" , "work firing people" , "exciting work" , "Michael Jackson album; novel" , "The Birds', say" .)