The most common and most likely answer to this crossword clue is the 7 letter word HOMONYM
I've seen this crossword clue in The Guardian
H
O
M
O
N
Y
M
More clues leading to the result HOMONYM
- Day aboard boat with maiden, no relative to know?
- In short, performing upset my namesake
- Strange hymn about leaders of old men’s organisation — it sounds the same
- Word that sounds like another primatearound New York
- Nearly in and on my back. Doesn’t that sound like ‘something else’?!
- Gay New York meathead waits for weights, say
Buddy explains!

The straight part
We know that "Word that sounds like another" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case word that sounds like another = homonym.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 HOMONYM mean?
HOMONYM noun- (strict sense) A word that both sounds and is spelled the same as another word.
- A word that sounds or is spelled the same as another word, technically called a homophone (same sound) or a homograph (same spelling).
- A name for a taxon that is identical in spelling to another name that belongs to a different taxon.