The Three Lions came close to their first major title since 1966 but will have to suffer for at least a year.
England drew 1-1 in extra time before Italy lost 3-2 on penalties.
Luke Shaw gave Gareth Southgate an early lead but it was called off in the second half when Leonardo Bonucci came home.
There will be no more scoring after that, and although England took a 2-1 lead in the penalty shootout, Marcus Rashford hit the post before stopping Gianguigo Donaruma’s efforts before Jadon Sancho and Bokayo Saka.
However, fans rushed to Twitter to congratulate the three lions.
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Observers were also quick to defend the players who failed on the spot.
Inevitably, some investigation fell on Southgate, which decided to introduce Rashford and Sancho late in extra time in preparation for the exchange of fire.