They just hang around looking decorative (7)
I believe the answer is:
tassels
'they' is the definition.
Both the definition and answer are plural nouns.
Maybe you can see an association between them that I don't see?
I can't explain the rest of the clue.
Can you help me to learn more?
(Other definitions for tassels that I've seen before include "Ornamental bunches of threads as on curtains" , "Ornamental bunches of cords" , "Bunches of cords for decoration" , "Adornments of bunches of cords" , "Decorations" .)