The most common and most likely answer to this crossword clue is the 7 letter word TERMITE
I've seen this crossword clue in The Times
T
E
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M
I
T
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More clues leading to the result TERMITE
- Support taking in jolly relations one found in wood?
- So-called ant: call it eastern
- Back in Tibet, I’m returning 16 17
- Oddly, their arachnid is an insect
- Name I note for insect
- 22 across, stratum ignoring one little bit
- Call upright character The Heartless Insect
- Insect: end one on hollow treille
- Insect in middle of buttercup, little one
- Insect described as ‘short’ — it gets trapped
Buddy explains!

The straight part
We know that "one found in wood" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case one found in wood = termite.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 TERMITE mean?
TERMITE noun- A white-bodied, wood-consuming insect of the infraorder Isoptera, in the order Blattodea.
- Of a chimpanzee: to catch termites by inserting a stick or vine into their nest and waiting for them to climb up it.