20 Most Beautiful Small Towns in the U.S.01 of 20. Girdwood, Alaska. Guido Cavallini/Getty Images. ... 02 of 20. Sedona, Arizona. Makito Umekita/Travel + Leisure. ... 03 of 20. Avalon, California. ... 04 of 20. Palisade, Colorado. ... 05 of 20. Little St. ... 06 of 20. Lanai City, Hawaii. ... 07 of 20. Wallace, Idaho. ... 08 of 20. Bardstown, Kentucky.