One of the most important ways of celebrating Christmas in Italy is the Nativity crib scene. Using a crib to help tell the Christmas story was started by St. Francis of Assisi in 1223 (Assisi is in mid-Italy). The previous year he had visited Bethlehem and saw where the stable where it was thought that Jesus was born.
The first Nativity play took place in a cave at Greccio a small village near Assisi, to remind the local people that Jesus was born into a poor family. St. Francis told the part of each character in the story himself using wooden figures in the play. After a couple of years, the play had become so popular that real people played the parts of the characters in the story. Songs were sung by the people taking part and they became what we call carols today!
Now cribs are used in Churches all over the world and even in some homes (we have a wooden one in my house!) to remind people of the story.
An old Italian custom is that children go out Carol singing and playing songs on shepherds pipes, wearing shepherds sandals and hats.
On Christmas Eve, no food is eaten until after Midnight Mass. Then the main Christmas meal is eaten. The meal includes Italian Christmas Cake called Panetone which is like a dry fruity sponge cake.
Epiphany (see Spain for more information), is also celebrated in Italy. On Epiphany night, children believe that an old lady called Befana brings presents for them. The story about Befana bringing presents is very similar to the story of Babouska told in Russia. Children put stockings up by the fireplace for Befana to fill.