Step 1: Recall the range of sine.
For all real numbers, $-1 \leq \sin \frac{1}{x} \leq 1$. Step 2: Multiply by $x$.
Thus, $-x \leq x \sin \frac{1}{x} \leq x$. Step 3: Apply the squeeze theorem.
As $x \to 0$, both $-x \to 0$ and $x \to 0$. Hence, by the squeeze theorem:
\[
\lim_{x \to 0} x \sin \frac{1}{x} = 0.
\]