Relations between Italy and Yugoslavia in the interwar period were generally tense, uncooperative and unfriendly. A number of political problems opened up a great rift between Rome and Belgrade: the diplomatic struggle for possession of Istria, Fiume and Dalmatia; the political rivalry for control of Albania; the Italian support for Croatian and Macedonian separatism; and the presence of national minorities within the respective borders. This paper, based on the most relevant and recent scholarly works on Italian-Yugoslav relations, seeks to offer a reassessment of the complexity of Italy’s foreign policy towards Yugoslavia between the two world wars.