Surrounded by fairies, she dies (8)

I believe the answer is:

perishes

'dies' is the definition.
('perish' can be a synonym of 'die')

'surrounded by fairies she' is the wordplay.
'surrounded by' indicates putting letters inside (I've seen this in other clues).
'fairies' becomes 'peris' (I've seen this in other clues).
'peris' enclosing 'she' is 'PERISHES'.

I've seen this clue in The Times.

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