Time Out Magazine says the community spirit of the area helped it place 27th on the 40-strong list.
It also says Phibsoboro had the edge over its neighbour Stoneybatter which was ranked 42nd last year.
The magazine describes the area of Dublin City as: "combining old-school charm and contemporary buzz, Phibsboro feels at once lived-in and lively."
The Esquerra de l’Eixample district in Barcelona made it to the top spot this year followed by Downtown LA and Sham Shui Po in Hong Kong.
Dennistoun in Glasgow was the only area in the UK to make the top ten, claiming eighth.
London's famous Soho area only managed to make the 31st spot, the top placed English area.