Window of no great significance seen around Kentucky (8)
I believe the answer is:
skylight
'window' is the definition.
(skylight is a kind of window)
'of no great significance seen around kentucky' is the wordplay.
'of no great significance' becomes 'slight' (I've seen this before).
'seen around' is an insertion indicator.
'kentucky' becomes 'ky' (abbreviation).
'slight' enclosing 'ky' is 'SKYLIGHT'.
(Other definitions for skylight that I've seen before include "Window in a roof or ceiling" , "Attic window" .)