Italy won the European Championship for the first time since 1968 as goalkeeper Gianluigi Donnarumma saved two England penalties to help Italy clinch a 3-2 shoot-out win.
Both sides had fought out a 1-1 draw, heading to penalties after a stalemate after extra time in the final at Wembley on Sunday.
Donnarumma saved from Jadon Sancho and Bukayo Saka after Marcus Rashford hit the post. Federico Bernardeschi, Leonardo Bonucci and Domenico Berardi all scored for the Italians while Joginho missed.
Luke Shaw had given England a dream start, marking his first England goal with a superb effort after two minutes but Italy, who offered almost nothing in the first half, gradually took command as the hosts sat back and leveled through Bonucci after 67 minutes.
It was the first final to be decided on penalties since Czechoslovakia beat West Germany in 1976 and will be wildly celebrated in Italy after they lost in the final in 2000 and 2012.
They made most of the running after halftime and in extra time and England can have few complaints after their early promise faded away.
It was nevertheless heartbreaking for most of the 67,000 Wembley crowd as England came up short in their first major final since they won the World Cup 55 years ago.