Right around fireplace is a butterfly (7)
I believe the answer is:
ringlet
'butterfly' is the definition.
(I've seen this before)
'right around fireplace' is the wordplay.
'right' becomes 'rt' (abbreviation as in Rt Hon- the Right Honourable).
'around' indicates putting letters inside.
'fireplace' becomes 'ingle' (I've seen this in another clue).
'rt' enclosing 'ingle' is 'RINGLET'.
'is a' acts as a link.
(Other definitions for ringlet that I've seen before include "Curling lock of hair" , "Hair curl, of an Irish dancer perhaps" , "Curl, of an Irish dancer say" , "Little curl" , "Bit of hair" .)