Spain got the early goal after David Silva headed in the opener in the 14th minute and doubled their lead in the 41st minute courtesy of a Jordi Alba goal.
Cesare Prandelli was left cursing his luck when his side had to play the remaining 30 minutes of the match with only ten men due to injuries and they didn't deserve to be on the receiving end of the biggest loss in a European final, as Fernando Torres and Juan Mata added salt to the Italians' wounds when they scored after coming on as substitutes.
Here, ESPNSTAR.com takes a look at the players that took the field at the National Stadium on Sunday evening.
Iker Casillas - 6.5
Before it turned out to be a one-sided affair, Casillas had to punch away a couple of dangerous balls from the Italians and thoroughly deserved to claim his clean sheet.
Gerard Pique - 7
Confidently went about his defensive duties and barely had to break a sweat even after the introduction of Di Natale, who was the one Italian who came closest to scoring.
Sergio Ramos - 7
Ensured Balotelli did not see much of the ball with his no-nonsense tackles. The Real Madrid man also maintained La Roja's impressive record of not conceding a goal since they last met the Italians in the group stage.
Alvaro Arbeloa - 7
A workman in a team of artists, Arbeloa knows his role and provided support on the right when required.
Jordi Alba - 9
Started busily pushing up from left-back and put his side two up when he surged up the field, collected Xavi's pass and finished exquisitely.
Sergio Busquets - 6.5
Carried out his usual routine of breaking down play in the middle, especially in the first half when Italy surprisingly had more possession of the ball.
Xavi - 7
One of the better performances from him in this tournament. Iniesta drove the team forward with his swift passing and came back to harass Pirlo as much as possible when his side were on the back foot.
Xabi Alonso - 7.5
Probably the only player who was willing to spread play to the wider areas of the pitch as compared to his narrow-passing Catalunyan team mates.
Andres Iniesta (86' off) - 8.5
The engine of this Spanish side, Iniesta looked threatening every time he touched the ball and displayed great work ethic in the middle of the park.
David Silva (59' off) - 7.5\
After a disappointing few matches, he finally restored some dignity with an impressive performance, which he capped off in the 14th minute when he nodded past Buffon to give La Roja the lead.
Cesc Fabregas (75' off) - 8
Fabregas made it very difficult for coach Vicente Del Bosque to leave him out of the starting XI after a series of impressive displays playing as the furthest man forward. Showed great vision to make the run and pick out Silva for the opening goal.
Pedro (59' on) - 6.5
A willing recipient on the right wing but Spain were coasting by the time he was involved. An easy outing.
Fernando Torres (75' on) - 8
Who would expected Torres to win the Golden Boot award with the number of minutes he had on the field? Compounded the misery of the Italy with his composed finish and even managed to set up Mata for Spain's fourth goal.
Juan Mata (86' on)
Gianluigi Buffon - 6.5
Cannot be blamed for any of the goals but was exposed too often and could not produce any heroics. Gave Chiellini an awkward pass in the build-up the defender's injury.
Giorgio Chiellini (21' off) - 6
Had to be taken off after picking up an injury early in the game. Was fortunate Italy did not concede as he played Alonso onside after failing to clear his lines.
Ignazio Abate - 6
Began the match by doing his best to make inroads on the right flank but was beaten back by the Spanish momentum. Lost track of Jordi Alba for the second goal and it was all downhill after that for the Italians.
Andrea Barzagli - 5
Visibly tired before the half-time whistle was blown and booked for a cynical foul on Andres Iniesta. Easily beaten for pace in the build-up to Alba's goal.
Leonardo Bonucci - 6.5
Bonucci was Italy's most willing slider and blocker, but the Juventus man seemed to be in damage-limitation mode from the off. Lucky not to concede a penalty for handball after the interval.
Claudio Marchisio - 5
An anonymous shift from the 26-year-old. Seemed uncertain of his role and offered almost no support to the front men.
Daniele De Rossi - 6
For the first 20 minutes, De Rossi seemed the man most likely to find a gap but his final ball lacked quality. Was eventually worn out after chasing the men in red for the majority of the second half.
Riccardo Montolivo (56' off) - 5
Worked harder than a traditional Italian playmaker is usually asked to and forced a couple of mistakes without cashing in. Got just one shot away but it was too close to the goalkeeper.
Andrea Pirlo - 6.5
Was closely watched by Xavi and company and was not given the time nor space to dictate play at all. Played a couple of killer balls forward from deep but his team mates just could not apply the finish.
Antonio Cassano (46' off) - 6
The hardworking AC Milan man was sacrificed by Cesare Prandelli in an attempt to force the game into extra time but should have played longer as he looked the most likely to score against Casillas.
Mario Balotelli - 6
Well short of his semi-final form, but the Manchester City man had something of a doomed job leading the line in a side that was being outclassed all over the pitch. The young forward would be a force to reckon with back in Manchester after playing in such a major competition if he can keep his composure.
Federico Balzaretti (21' on) - 6.5
Looked more of a complete full-back as compared to Chiellini, who had to leave minutes after kick-off after a recurrence of his hamstring injury.
Antonio Di Natale (46' on) - 7
The only man to beat Casillas in this competition had a glorious chance to drag Italy back into the game five minutes after coming on, but shot too close to the Spain skipper and hit a tame second attempt straight at the Real custodian.
Thiago Motta (56' on) - 5
Came on for five minutes and pulled a hamstring which ended his game and - effectively - Italy's hopes of taking the game into extra time.