We present a theory of a single point, line or plane defect coupling to the square of the order parameter in a metallic system near a quantum critical point at or above its upper critical dimension. At criticality, a spin droplet is nucleated around the defect with droplet core size determined by the strength of the defect potential. Outside the core a universal slowly decaying tail of the droplet is found, leading to many dissipative channels coupling to the droplet and to a complete suppression of quantum tunneling. We propose an NMR experiment to measure the impurity-induced changes in the local spin susceptibility. 75.10.Jm,75.10.Nr,75.70.Kw,76.30.Da The behavior of 'droplets' of local order in a nonordered background is an issue of wide relevance in condensed matter physics. One particularly interesting subclass of problems concerns 'droplets' induced by defects in nearly critical systems. A long-standing problem in heavy fermion physics concerns the very small magnetic moments which have been observed in several materials [1,2] and may be related to grain boundaries and other structural defects [3][4][5]. In a colossal magnetoresistance material, magnetic order was observed to be enhanced near grain boundaries.[6] A related issue is the magnetism induced in high temperature superconductors by apparently non-magnetic substituents such as Zn [7], which have been interpreted [8,9] as spin droplets induced in a nearly critical system (although other interpretations exist also [10]). Nucleation of regions of charge density wave order around defect sites on the surface of a 'correlated' material was reported by [11]. 'Quantum Griffiths' effects and 'Kondo disorder' are presently of intense interest. [12][13][14][15]. The problem bears on the fundamental issue of the Kondo effect near a quantum critical point [16]. Finally, recording of information involves the polarization of small domains, whose long time dynamics and stability are of great importance.This Letter presents the theory of the local polarization ('droplet') induced by a single defect in an otherwise nondisordered system which is near a quantum critical point at or above it upper critical dimension, d u . These restrictions allow a controlled theoretical treatment and apply to a wide range of systems including metallic magnets in dimensions d = 2, 3 [17,18] and "quantum paraelectric" (i.e. nearly ferroelectric) systems in d = 3 [19]. We study defects which couple to the square of the order parameter, i.e. change the 'local T c ', and thus create small regions where order is more favored than in the pure system. We address three questions: under which circumstances does the defect create a 'droplet', a region about the defect in which the order parameter is non-vanishing (at least on short time scales)? What is the size and general properties of the droplet? What are the relevant fluctuations? Our work is complementary to that of Vojta and Sachdev [20], who studied a linear coupling of the defect to the order parameter in a quantum critical system...