Party song about America (8)
I believe the answer is:
carousal
'party' is the definition.
(I've seen this before)
'song about america' is the wordplay.
'song' becomes 'carol' (carol is a kind of song).
'about' indicates putting letters inside.
'america' becomes 'usa' (United States of America).
'carol' going around 'usa' is 'CAROUSAL'.
(Other definitions for carousal that I've seen before include "Lively drinking party" , "A drink-and-be-merry session" , "Merry drinking spree" , "rave" , "Merry drinking party" .)