Cheering fans greeted the team as they arrived back in Rome with the trophy on Monday.
The victory at Wembley stadium brought Italy its first European title since 1968.
England remain without a major trophy since 1966, when they beat West Germany in the World Cup final 4-2.
At a fan zone in Rome, thousands of supporters started jumping in pure elation, shouting and hugging each other after a missed penalty by England’s Bukayo Saka signalled Italy’s victory.
Ecstatic fans started street parties across the country immediately.
“I am so happy! We are Euro champions, I am going to celebrate all night, I am going to celebrate all night!” Beatrice Mattioli in Rome told Reuters news agency.
“It’s incredible, it’s incredible, you can’t feel better than this, it is amazing, we won the final!” said Stefano Gucci, another supporter in the Italian capital.
The triumphant team landed at Rome’s Fiumicino airport early on Monday morning. Crowds cheered as they disembarked, and later as they arrived at their hotel.
The fan zone on Rome’s Piazza del Popolo echoed the emotions of the night: from stunned silence with the early England goal to the elation of the Italian equaliser – and then to wild celebrations after a penalty shoot-out that some could barely watch from nerves.
Flares and fireworks blasted out, Italian flags filled the skies and utter joy has returned to a country that needed it desperately. After the hell of the pandemic, football heaven has brought the smiles back to this nation.
The star of what they’re calling an Italian miracle is Roberto Mancini, transforming a national team from the shame of failing to qualify for the last World Cup to a side unbeaten now in 34 games.