The most common and most likely answer to this crossword clue is the 4 letter word TITI
T
I
T
I
Buddy explains!

The straight part
We know that "South American little creature" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case south american little creature = titi.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 TITI mean?
TITI noun- A New World monkey of the genus Callicebus, native to South America, distinguished by their long soft fur.
- Mutton bird.
- A tree of the southern United States (Cliftonia monophylla) having glossy leaves and racemes of fragrant white flowers succeeded by one-seeded drupes.
- Any related tree of the genus Cyrilla.