I don't agree with the above posts. While damsels as a whole are known to be scrappy I believe that certain species can be placed in a community tank. I had an established Royal Gramma and a smaller clown in my tank for a few months and added an Azure damsel (very similar to yellow tail), and while there was some showing and standing off the Gramma eventually put the damsel in its place. Clown just ignored the damsel's shows. Sadly about 6 months after that the Gramma went carpet surfing (had it just over a year at that point). The damsel is still there, and continues to play nice with the since added Canary wrasse, tiny clown goby, neon goby, and the original clown.
That being said I wouldn't recommend placing even a relatively peaceful damsel in a smaller tank with similarly behaved fish as it's important that the inhabitants have their own space. My tank is approx. 70gal (30x24x24). They shared space in the tank, but the Damsel would always give way to the Gramma who occasionally reminded the Damsel who's boss and they each had their own cave to rest in. Now that the Gramma's gone there's essentially zero conflict between the Damsel and any of the other fish.
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