Spain started proceedings brightly at Wembley, dominating possession and forcing Italy custodian Gianluigi Donnarumma into making a few saves. Luis Enrique's men continued to ask questions of the Italy defense after the break.
But a fine counterattacking move initiated by Donnarumma was sumptuously finished by Federico Chiesa to give Italy the lead at the hour mark. It looked like the Azzurri would weather the Spanish storm and hold on to their narrow lead. But Dani Olmo's brilliant defence-splitting pass ten minutes from time released Alvaro Morata and the substitute produced an unerring finish to restore parity for Spain.
With nothing separating the two teams at the end of normal and regulation time, a penalty shootout ensued. Both teams missed their first spot-kicks, with Manuel Locatelli seeing his weak penalty saved by Unai Simon, while Dani Olmo blazed his effort over the woodwork.
Following five successful penalties from both teams, Alvaro Morata's spot-kick was saved by Donnarumma. Jorginho then stepped up to send the Azzurri into the Wembley final on Sunday, where they'll face either England or Denmark.
On that note, let's have a look at five interesting stats from the Euro 2020 semi-final between Italy and Spain.
#5 Spain lose a semi-final at a major tournament for the first time
After failing to convert their ascendancy to goals, Spain needed an 80th-minute strike from substitute Alvaro Morata to force extra time in the first Euro 2020 semi-final against Italy in London.
With no more goals in the remainder of regulation time and 30 minutes of extra time, a penalty shootout was required. Spain made a dreadful start, with Dani Olmo failing to work the Italy keeper after the Azzurri had also missed their first spot-kick.
With the shootout score reading 3-2 Italy, Alvaro Morata stepped up but saw his tame effort saved by Donnarumma diving to his left. Moments later, Jorginho produced a nerveless penalty to send the Azzurri to the Euro 2020 final at Spain's expense. The defeat meant La Furia Roja failed to progress from the semi-final of a major tournament for the first time in their history.
Spain had previously won their European Championship semi-finals in 1964, 1984, 2008 and 2012 and their last-four clash in the 2010 FIFA World Cup. On all but one occasion (1984), La Furia Roja went all the way in the tournament.
#4 Italy have reached their 10th major final, most by a European nation after Germany
After producing a perfect Euro 2020 qualification campaign and winning all three of their group-stage games, Italy lived up to their 'favorites' tag. They saw off Austria and Belgium to book a semi-final date with Spain.
It was the fourth knockout-round meeting between the two teams at the Euros in the last four editions of the competition. Spain beat Italy in a penalty shootout in the Euro 2008 quarter-finals and 4-0 in the Euro 2012 final, while the Azzurri beat Spain 2-0 in the Round of 16 at Euro 2016.
In their latest meeting in the Euro 2020 semi-finals, Italy emerged triumphant in a penalty shootout to reach their tenth major final (four at the Euros and six at the FIFA World Cup). It's the most by any European team, behind only Germany (14).
Against either England or Denmark on Sunday, the Azzurri will look to win their second European Championship title and their first in 53 years.