A sub-25 percent shooting performance proved crucial for Damian Jennings' side, though they did out-rebound the Italians 49-36.
Katrin Chiemeka and Temi Fagbenle led GB with ten points each, with the latter adding eight rebounds. Kristie Sheils added eight points and Renee Busch six while Ella Clark had seven boards to go with her two points.
Federica Tognalini led Italy with 17 points and ten rebounds, while Laura Spreafico added 12 points.
Standard Life GB under-20 women's head coach, Damian Jennings admitted his pride in reaching the final stage of the competition: "Finishing eighth is something this group should be very proud of and so should the Great Britain supporters.
"There are not too many countries that in one year of promotion and a Division B championship can then go on to finish in the top half of the highest level in Europe all within 12 months."
Spreafico opened the scoring with a three-pointer, and although Chiemeka replied from outside the arc, the Italians went into the first break with a 19-8 lead.
Fagbenle cut the deficit with the first score of the second period and a pair of foul shots from Sheils kept them in touch but despite Busch's three-pointer, the Italians led 35-22 at half-time.
Four Chiemeka points and a jump shot from Clark made it a ten point game heading into the final four minutes of the third period before four straight Sheils free-throws cut the deficit to eight.
Elena Bestagno put the Italians 42-32 up going in the final break, and Italy reeled off the first seven points of the fourth period to lead by 17.
Dee Hayward launched a 6-0 run to cut the deficit to 49-38 with 5:51 remaining, but a 9-2 Italian run effectively ended the game as a contest.
Fagbenle and Sheils both took their tallies to eight as Britain chopped five points off the deficit before the former finished the Standard Life GB Under-20 women's first Division A European Championship tournament with a pair of free-throws and a steal.
