I head around Rhode Island from peninsula (7)
I believe the answer is:
iberian
'peninsula' is the definition.
(Iberian Peninsula is an example)
'i head around rhode island' is the wordplay.
'head' becomes 'bean' (bean is a kind of head**).
'around' means one lot of letters goes inside another.
'rhode island' becomes 'ri' (US postal abbreviation).
'bean' placed around 'ri' is 'berian'.
'i'+'berian'='IBERIAN'
'from' is the link.
(Other definitions for iberian that I've seen before include "Spaniard, perhaps" , "Former Caucasian" , "south of the Pyrenees" , "Native of Spain or Portugal" , "from a part of Europe" .)