Taking notice of ambassador, say, limiting noise (7)
I believe the answer is:
heeding
'taking notice' is the definition.
(I've seen this before)
'ambassador say limiting noise' is the wordplay.
'ambassador' becomes 'he' (His or Her Excellency).
'say' becomes 'eg'.
'limiting' indicates putting letters inside.
'noise' becomes 'din' (din is a kind of noise).
'eg' placed around 'din' is 'eding'.
'he'+'eding'='HEEDING'
'of' acts as a link.
(Other definitions for heeding that I've seen before include "Obeying" , "Noting" , "Paying close attention to" , "Minding" , "Listening" .)