Country dancing nice with lad (7)
I believe the answer is:
Here is my best explanation:
'country' is the definition.
(Iceland is an example)
'dancing nice with lad' is the wordplay.
'dancing' indicates anagramming the letters.
'with' means one lot of letters go next to another.
'nice' after 'lad' is 'ladnice'.
'ladnice' is an anagram of 'ICELAND'.