Jessica Simpson is in Italy celebrating her 30th birthday with new boyfriend Eric Johnson -- and sources tell us the entire vacation has been nothing short of "magical."

We're told Jessica, Eric, her best friends and her family have been swimming, boating and hiking around the island of Capri -- where the food has been incredible.

The crew feasted on red velvet cake for Jessica's b-day and enjoyed their favorite meal so far last night at a place called Da Paolino. Check out the restaurant's website -- it's gorgeous!

As for Eric, we're told he's loving the trip too and is "having a blast" meeting Jessica's family and friends.

Anyone else jealous?

Hot Videos