Wan-looking Rod turning in for moral tale (7)
I believe the answer is:
parable
'moral tale' is the definition.
(I've seen this before)
'wan-looking rod turning in' is the wordplay.
'wan' becomes 'pale' (synonyms).
'looking rod' becomes 'bar' (I've seen this before. I am not sure about the 'looking' bit.).
'turning' says the letters should be written in reverse.
'in' is an insertion indicator.
'bar' written backwards gives 'rab'.
'pale' enclosing 'rab' is 'PARABLE'.
'for' acts as a link.
Can you help me to learn more?
(Other definitions for parable that I've seen before include "Story illustrating moral lesson" , "Moral-carrying story" , "Sower, for one" , "Instructive story" , "Exemplum" .)