The most common and most likely answer to this crossword clue is the 6 letter word AMALFI
A
M
A
L
F
I
Buddy explains!
The straight part
We know that "town in Italy" is the straight/definition part of the clue. The straight part is often a synonym or definition, in this case town in italy = amalfi.The cryptic/wordplay part
In cryptic crossword there's often an wordplay/cryptic part as well.This part involves a more complex hint, such as an anagram, homophone, hidden word, etc.
Sadly, We don't have an explanation for this specific crossword clue yet.