Goals from Alex Scott and Jarell Quansah sealed England's place in the showpiece as Ian Foster's men showed great resilience away in Slovakia.
The Azzurrini took the lead in the 12th minute as Fabio Miretti converted an early penalty to edge his side ahead.
With the Young Lions unable to mount a response in the remainder of the first-half, head coach Foster opted to make three changes just 10 minutes after the restart.
One of those changes included the introduction of Alex Scott, who replaced Aston Villa's Tim Iroegbunam.
It took just two minutes for the 18-year-old to have an impact as the youngster headed England level from a corner.
Both teams had their fair share of opportunities to win the game, but it was England who found the back of the net for the second time as Jarell Quansah scored from yet another corner.
With seven minutes added, England were forced to remain defensively solid as Italy pushed for a stoppage time equaliser.
The Young Lions held on for the win to seal their first final in this tournament since 2017.
Back then, England powered to their first title since 1993 as they beat Portugal 2-1 to lift the trophy in Georgia.
This will be the fourth final in 16 years for England, who take on group stage rivals Israel on Friday.
A 2-1 semi-final victory over France earned Israel's spot in the showpiece. They will now look to avenge their 1-0 loss to England in the group as they eye their first ever title in this event.