Think the pal tied knots in it (8)
I believe the answer is:
meditate
'think' is the definition.
(meditating is a kind of thinking)
'pal tied knots in it' is the wordplay.
'pal' becomes 'mate' (both can mean a friend).
'knots' indicates an anagram (I've seen 'knotted' mean this).
'in it' indicates putting letters inside.
'tied' is an anagram of 'edit'.
'mate' placed around 'edit' is 'MEDITATE'.
'the' is the link.
(Other definitions for meditate that I've seen before include "Think contemplatively" , "Consider thoughtfully" , "Think deeply and quietly" , "Think intently and at length" , "brood" .)