Because Sleepy Hollow is a relatively small incorporated village, neighborhood boundaries are often informal rather than rigidly official. Commonly recognized areas include the following:
- **Downtown / Beekman Avenue area** — The village's main commercial corridor, with shops, restaurants, services, and a strong sense of local daily life. - **Waterfront district** — Includes redeveloped former industrial lands, newer housing, shoreline access, and views of the Hudson River and the Governor Mario M. Cuomo Bridge. - **Historic core near the church and cemetery** — The area associated with the Old Dutch Church, Sleepy Hollow Cemetery, and the village's strongest literary and colonial-era identity. - **Residential uplands / eastern neighborhoods** — Primarily residential streets rising inland from the river, with a mix of housing types and quieter blocks. - **Edge areas toward Tarrytown** — Transitional sections where village life blends into adjacent Tarrytown's commercial and residential patterns.
In practical terms, many residents navigate Sleepy Hollow as a set of corridors and landmarks rather than sharply bounded neighborhoods. The village's small scale means most areas remain closely connected to one another.