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Little Italy San Francisco. The small area of Little Italy is located in the North Beach district, in the northeastern area of the city of San Francisco San Francisco’s North Beach neighborhood is called “Little Italy, ” and it’s no wonder. Although waves of residents have lived their lives and left their mark on the neighborhood, the most permanent and visible stamp has been Italian. For decades, Italian restaurants, delis, and bakeries were abundant, and the smells of Italian cooking perfumed the air.