Mattia Zaccagni scored with the final kick to confirm a last-16 spot for Italy and likely send Croatia home.
Luka Modric looked to be Croatia’s saviour again by opening the scoring, a minute after missing a penalty. But Croatia are now third in Group B, and face a very nervy wait to see if they remain in the tournament. England can save Croatia by beating Slovenia by three goals.
After a scoreless first half, Croatia's Luka Modric had a penalty saved in the 54th minute but less than a minute later he smashed home a rebound after Gianluigi Donnarumma pulled off another fine save from Ante Budimir.
The goal brought defending champions Italy to life, and they pressed for the equaliser which would take them through and with time running out Zaccagni curled home a shot from distance to break Croatian hearts.
Spain top the group on nine points, Italy finish with four and Croatia are third on two points and must wait to see if they will progress as one of the best four third-placed finishers.
Albania are eliminated after coming bottom of the group on one point after their 1-0 loss to Spain, a result which means England, France and the Netherlands are now guaranteed to finish at least among the four best third-placed teams.
