The city granted a permit for the street festival on Tuesday.
Some business owners in the area had complained about the noise, the crowds and the pungent sausage-and-pepper smell. They were pushing to shrink the annual celebration of Italian food and culture.
Instead, the 85th annual festival will retain its traditional boundaries in Little Italy and will run its full course from Sept. 15 through Sept. 25.
But it will end a half-hour earlier on Fridays and Saturdays and it will start a half-hour later every day.
