Dismiss lightly, in a funny kind of way (5,2,3)

I believe the answer is:

laugh it off

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'a funny kind of way' is the definition.
I know nothing about this answer so I can't tell whether it can be defined by this definition.

'dismiss lightly in' is the wordplay.
'dismiss' becomes 'laugh off' (laughing off is a kind of dismissing).
'lightly' becomes 'it' (I am not sure about this - if you are sure you should give a lot more credence to this answer).
'in' indicates putting letters inside.
'laughoff' placed around 'it' is 'LAUGH IT OFF'.

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