Draws back engineers and yields (7)
I believe the answer is:
recedes
'draws back' is the definition.
(receding is a kind of drawing back)
'engineers and yields' is the wordplay.
'engineers' becomes 're' (Royal Engineers).
'and' means one lot of letters go next to another.
'yields' becomes 'cedes' ('cede' can be a synonym of 'yield').
're'+'cedes'='RECEDES'
(Other definitions for recedes that I've seen before include "Withdraws" , "Subsides" .)