Terrible monster holding fruit (5)
I believe the answer is:
lemon
'fruit' is the definition.
(I know that lemon is a fruit)
'terrible monster holding' is the wordplay.
'holding' indicates a hidden word.
'LEMON' can be found hidden inside 'terrible monster'.
(Other definitions for lemon that I've seen before include "Small evergreen fruit tree" , "Fruit - useless thing" , "Tone" , "Fruit high in vitamin C" , "Washout" .)