In the present analysis, the formation and the decay of \(^{158}\)Tb\(^{*}\) compound nucleus formed via \(^{6}\)Li +\(^{152}\)Sm reaction is studied. The energy density functional theory based on the Skyrme effective interaction is used to calculate the nuclear potential. Within the frameworks of Wong and \(\ell\)-summed Wong formula, the fusion process is examined and for the decay, the dynamical cluster decay model is used. The complete fusion cross-section shows decent agreement with experimental data with \(\ell\)-summed Wong formula which otherwise indicate \(\sim\)35\(\%\) suppression at higher incident energies with Wong formula. The decay part of lanthanide compound nucleus \(^{158}\)Tb\(^{*}\) is investigated using the concept of nuclear surface polarization effects (SPE) in which the complete fusion (CF) and incomplete fusion (ICF) dynamics is explored in view of fragmentation potential, preformation probability and penetrability of decaying fragments. The SPE is also tested on neck-length and barrier modification parameters. Along with this, the evaporation cross-sections in aforementioned decay processes are calculated using angle dependent and angle independent diffuseness parameter. Our results indicate that the SPE significantly influence the excitation functions and related dynamics of lanthanide compound nucleus as the experimentally reported CF and ICF cross-section for \(^{158}\)Tb\(^{*}\) system are found to be nicely fitted when angle dependent diffuseness is incorporated in the nuclear potential.