Football fans were dancing in the streets in Sydney and Melbourne's Italian community precincts after watching their team book a berth in the World Cup final.
Hundreds of Italian supporters gathered around cafes and bars along Norton Street, Leichhardt in Sydney's inner-west to watch the game being played in Germany.
In Melbourne's Lygon Street, more than 250 people crammed inside Cafe Notturno, where some fans warmed themselves with coffee and bacon and eggs, while others appeared too tense to eat.
While the Azzurri had most of the play during the match, Italian fans yelled as the men in blue peppered the goals without success.
The tension went up a notch as the match went into extra time and Italy had two missed shots at goal in the opening two minutes.
But in the dying seconds of extra time, Italy broke through with two quick goals, and the sea of supporters in Norton Street erupted into celebrations.
Cheering, screaming and hugging each other, the fans, draped in patriotic red, white and green poured onto the road for a street party.
The crowd quickly swelled from a few hundred to several thousand as people came out of their homes to join the celebrations.
Flares and fireworks lit up the sky and orange smoke filled the streets.
Nino Pelle said it had been an excruciatingly tense game to watch, but it was worth it to see Italy win.
"Italy always does the same thing, they always keep us right to the end," Mr Pelle told AAP.
"But we're going to win the World Cup now for sure, I'm absolutely ecstatic, it's the best feeling ever."
German fans had less to feel happy about.
Up to 600 people packed the German-style Lowenbrau Keller bar in The Rocks in Sydney, and many had to be turned away.
The bar's manager Reinhard Wurtz said the crowd was mostly German, with a number of Aussies also turning out in the hope of seeing Germany take revenge on the Italian team.
He said a smattering of Italian supporters kept a low profile.
"We kept it very quiet because I can't protect too many Italians," Mr Wurtz joked. But it was Italy who had the last laugh, and Mr Wurtz was gracious in defeat.
"It would have been nice to have another party next Monday, but it doesn't look like it," he said.
Police in both cities said fans had been well-behaved, with no reports of trouble and no arrests.
Sydney police ushered fans off Norton Street shortly after 8am (AEST) to reopen the road to traffic, while in Melbourne 400 soccer die-hards who had blocked part of Lygon Street were moved on to nearby Argyle Square.
With celebrations set to carry on through the day, Joseph Saba summed up the attitude of many Italian Australians.
"We wanted Australia to make it, but still, Italy making it is second best," Mr Saba said.