Since the early 1990s Italy has been engaged in promoting peace and stability in the Balkans with a growing amount of political, economic and military resources. At the beginning of the process of Yugoslav dissolution, the Italian polity was torn apart by a set of political and financial scandals that prevented the development of an assertive foreign policy. Over time, however, Italy was able to play a more relevant and constructive role. This article traces Italy's policy towards the Balkans from its modest beginnings to the present day, focusing on four key political/economic events: the war in Bosnia, the Telekom Serbia affair, the war in Kosovo and the support given to the nascent Albanian democracy. Generally speaking, Italy has provided a positive, although modest, contribution to bringing peace and stability to the region.