Overwhelmed by destiny, outfit in warship (7)
I believe the answer is:
frigate
'warship' is the definition.
(I know that frigate is a type of warship)
'overwhelmed by destiny outfit' is the wordplay.
'overwhelmed by' means one lot of letters goes inside another (inserted letters get absorbed or overwhelmed).
'destiny' becomes 'fate' (synonyms).
'outfit' becomes 'rig' (synonyms).
'fate' going around 'rig' is 'FRIGATE'.
'in' is the link.
(Other definitions for frigate that I've seen before include "Ship" , "Warship; -- bird" , "Light warship" , "US warship" , "Type of warship" .)