The most common and most likely answer to this crossword clue is the 9 letter word FAIRYLAND
I've seen this crossword clue in Financial Times
F
A
I
R
Y
L
A
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D
More clues leading to the result FAIRYLAND
- Female to get around breezy, fantastic place
- Wonderful place — no opening for larceny, reasonably secure
- Pastry with light filling needing dash of Drambuie – might spirit be found here?
- Just Dylan created a magical setting
- Travelling far, lady in wonderful setting
- Female secure around spacious place of enchantment
- Lady in far off fantasy world
Buddy explains!
The straight part
We know that "a magical setting" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case a magical setting = fairyland.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.
What does FAIRYLAND mean?
FAIRYLAND noun- The imaginary land or abode of fairies.
- Having qualities ascribed to fairies and their realm; fanciful, delicate, surreal, or diminutive.