The most common and most likely answer to this crossword clue is the 10 letter word PERCIPIENT
I've seen this crossword clue in The Guardian
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More clues leading to the result PERCIPIENT
Buddy explains!

The straight part
We know that "Observant" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case observant = percipient.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.
Crossword Answer definitions
PERCIPIENT noun- One who perceives something.
- One who has perceived a paranormal event.
- Having the ability to perceive, especially to perceive quickly.
- Perceiving events only in the moment, without reflection, as a very young child.