Souvenir pencil eraser displays raised (5)
I believe the answer is:
relic
'souvenir' is the definition.
(I know that souvenir can be written as relic)
'pencil eraser displays raised' is the wordplay.
'displays' says the answer is hidden in the clue.
'raised' is a reversal indicator (going up in a down clue).
'ciler' is hidden in the letters of 'pencil eraser'.
'ciler' reversed gives 'RELIC'.
(Other definitions for relic that I've seen before include "precious object" , "antique item" , "(Holy) remains" , "Reminder of times past" , "Ancient artefact" .)