She stood on the beach with her hair fluttering in the wind.

Literal

She [topic-は] hair [object-を] wind [with-に] [letting-flutter-なびかせ] [while-ながら] beach [on-に] was-standing.

なびかせる is the causative of なびく ('flutter, bend in the wind') — 'cause to flutter,' i.e., let her hair stream. 風になびかせる takes に for the agent of fluttering (the wind). ~ながら attaches to a verb stem to mean 'while doing,' connecting the streaming-hair to the standing.