The most common and most likely answer to this crossword clue is the 7 letter word BUGBEAR
I've seen this crossword clue in The Times
B
U
G
B
E
A
R
More clues leading to the result BUGBEAR
- Something frightening, British, and not half unattractive to put up with
- Worry, having hold on spy
- Carry infection at the front? It’s a nightmare!
- Concealed mike at Paddington, provoking great annoyance?
- Plant listening device in pub, catching English bête noire
- Nightmare with stomach after illness?
- Insect on animal’s a source of annoyance
- Extremely bijou gastropub – listener’s pet hate
- Tap on counter — a quarter admitted it’s annoying
- Worst fear is a computer problem to put up with
Buddy explains!

The straight part
We know that "Nightmare" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case nightmare = bugbear.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 BUGBEAR mean?
BUGBEAR noun- An ongoing problem; a recurring obstacle or adversity.
- A source of dread; resentment; or irritation.
- An imaginary creature meant to inspire fear in children.
- To alarm with idle phantoms.