Mean goblin dancing close to pixie (7)
I believe the answer is:
ignoble
'mean' is the definition.
(similar in meaning)
'goblin dancing close to pixie' is the wordplay.
'dancing' indicates an anagram.
'close to' suggests the final letters (the close/ending of).
The last letter of 'pixie' is 'e'.
'goblin' is an anagram of 'ignobl'.
'ignobl'+'e'='IGNOBLE'
(Other definitions for ignoble that I've seen before include "Cheap" , "Lacking dignity" , "Mean - of low birth" , "'Dishonourable, mean (7)'" , "'Far from the madding crowd's . . . . . . . strife'" .)