What does the cryptic crossword clue "Fabulous creature to wear piece of cloth inside (6)" mean?

The definition is "Fabulous". The wordplay uses a container (one word inside another). RAG (synonym="piece of cloth") in DON (synonym="to wear") = DRAGON; definition: "Fabulous creature" The answer is DRAGON.

Fabulous creature to wear piece of cloth inside (6)

Guardian Cryptic #29615 | 22 Down | 2025-02-11 flower

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