Little creature possibly found in the wood (7)
I believe the answer is:
termite
'little creature' is the definition.
'termite' can be an answer for 'creature' (termite is a kind of creature). I'm not sure about the 'little' bit.
I don't understand the remainder of the clue.
Can you help me to learn more?
(Other definitions for termite that I've seen before include "Ant-like insect which destroys timber" , "Wood-ant" , "Mound-building insect" , "White ant" , "It lives on wood" .)