Lid on chest modified to display tools (8)
I believe the answer is:
hatchets
'tools' is the definition.
(hatchet is a kind of tool)
'lid on chest modified' is the wordplay.
'lid' becomes 'hat' (synonyms).
'on' indicates putting letters inside.
'modified' is an anagram indicator.
'chest' with letters rearranged gives 'chets'.
'hat' put into 'chets' is 'HATCHETS'.
'to display' acts as a link.
(Other definitions for hatchets that I've seen before include "Choppers" , "tools" , "Small axes with short handles" .)