The Italian Festival began in 1976 in Rundle Mall. A parade travelled from Victoria Square to Elder Park before the celebrations in the Mall. The Italian Festival became through a natural progression the Carnevale in Adelaide twenty years later in 1996. The festival has had a number of homes in Adelaide in its thirty-year history. It has been staged in Rundle Mall, Elder Park, Norwood Oval, Adelaide Oval, Rymill Park and finally to its present location today at the Adelaide Showgrounds.

Over the years the festival has been a fun way of celebrating Italian culture, history and multiculturalism. It has been a means of inspiring youth to embrace their Italian heritage and for the wider community to experience the Italian culture. Many South Australian Italo-Australian clubs and associations have always participated in the festival by either catering or showcasing their region at the event.

As well as showcasing the Italian culture, the festival is a fundraising event, which has raised funds to cater for welfare needs of the elderly in the community. The Italian Festival also supports other worthy charities and community organisations through their involvement in the major lottery and their participation in the event.