Unusual rug seen with youth originally from island (8)
I believe the answer is:
guernsey
'island' is the definition.
(I've seen this before)
'unusual rug seen with youth originally' is the wordplay.
'unusual' indicates anagramming the letters.
'with' says to put letters next to each other.
'originally' suggests taking the first letters.
The initial letter of 'youth' is 'y'.
'rug'+'seen'='rugseen'
'rugseen' with letters rearranged gives 'guernse'.
'guernse'+'y'='GUERNSEY'
'from' acts as a link.
(Other definitions for guernsey that I've seen before include "off the Needles?" , "Second largest of Channel Islands" , "Channel isle" , "Neighbour of Jersey" , "Cow - sweater" .)