Very entertained by Christmas story (5)
I believe the answer is:
novel
'story' is the definition.
(I know that novel is a type of story)
'very entertained by christmas' is the wordplay.
'very' becomes 'v' (abbreviation).
'entertained by' is an insertion indicator (inserted letters are hosted or entertained).
'christmas' becomes 'Noel' (Noel can mean Christmas).
'v' put inside 'noel' is 'NOVEL'.
(Other definitions for novel that I've seen before include "book such as Brave New World" , "work of Dickens?" , "Kim, eg" , "Previously unknown" , "Scoop, say" .)