Terrier in shame lay twitching (8)
I believe the answer is:
sealyham
'terrier' is the definition.
(Sealyham is an example)
'shame lay twitching' is the wordplay.
'twitching' is an anagram indicator (letters twitch or move into a new order).
'shame'+'lay'='shamelay'
'shamelay' anagrammed gives 'SEALYHAM'.
'in' is the link.
(Other definitions for sealyham that I've seen before include "Dog that rhymes with ..." , "Breed of terrier" , "Short-legged terrier" , "5 [MANS BEST FRIEND]" , "Hay meals (anag) - kind of terrier" .)