The most common and most likely answer to this crossword clue is the 8 letter word ELSINORE
I've seen this crossword clue in The Times
E
L
S
I
N
O
R
E
More clues leading to the result ELSINORE
- Monarch visiting Skye, perhaps, back in castle
- Castle, otherwise trapping one knight more in the centre
- Tragic scene of crime sitting in European tradition
- European learning about evil in tragic setting
- Tragically timeless in role set here
- Senile old bats surrounding rear of Windsor Castle, in which prince broods
- Relies on goulash in ShakesÂpearean setting
- Dramatic setting relies on rocks
- Shakespearean setting relies on production
- Queen on island set up place for prince
Buddy explains!

The straight part
We know that "castle" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case castle = elsinore.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.