By FOX Sports staff
With both sides having already booked their places in the semi-finals ahead of the weekend, Saturday's match provided both a chance to seal top spot in Group A.
And that team turned out to be Brazil as goals from Dante, Neymar and a Fred brace proved enough to see off the Azzurri, who netted through efforts from Emmanuele Giaccherini and Giorgio Chiellini.
Despite the defeat, Prandelli believes his charges played well but admits they were made to pay by their clinical opponents.
"We had a great performance in the second half and deserved an equaliser," he told Rai Sport. "But against great players it takes nothing for them to punish you.
"I am very satisfied, as we played the second half with great character. The reaction was excellent, we attacked the space and - at 3-2 - we could have drawn level."
Prandelli was also happy with they way Italy coped despite having to make two early changes following injuries to Riccardo Montolivo and Ignazio Abate, and is looking forward to what is likely to be a last-four meeting with Spain.
"We were forced into two early changes, so it was tough," he added. "But after the break we saw our system and it worked.
"We are looking forward for growth and these games help us grow a great deal, I believe. Spain are the best team in the world, so if we face Spain then we will recover our fitness levels and play Spain."
Spain only need a point against Nigeria to seal top spot in Group B and set up a clash with Italy, which would be a rematch of last year's Euro 2012 final.