This article revisits the often contradictory experience of Allied rule in Italy, challenging the narrative of liberation and proposing instead to embrace more emphatically the lens of ‘occupation’. Building on the author’s own contribution to the field and reviewing the evolution of the literature over the past decades, it explores five central themes that help redefine our understanding of this era: the temporal and spatial backdrop against which Allied rule unfolded, shaped by the notion of ‘co-belligerency’; the impact of total war on Italian society; the role of British and American military and political leadership in shaping occupation policy; the cultural and symbolic influence of American forces; and the impact of war and occupation on women. It argues that the occupation regime profoundly shaped Italy’s experience during the mid-twentieth century as well as its postwar identity, contributing to a persistent national pacifism and ambivalence towards the new superpowers.