Italian folk music has a deep and complex history. National unification came quite late to the Italian peninsula, so its many hundreds of separate cultures remained un-homogenized until quite recently compared to many other European countries. Moreover, Italian folk music reflects Italy's geographic position at the south of Europe and in the center of the Mediterranean Sea: Arabic, African, Celtic, Persian, Venetian, Roma, and Slavic influences are readily apparent in the musical styles of the Italian regions. Italy's rough geography and the historic dominance of small city states has allowed quite diverse musical styles to coexist in close proximity.

Today, Italy's folk music is often divided into several spheres of geographic influence, a classification system proposed by Alan Lomax in 1956 and often repeated since. The Celtic and Slavic influences on the group and open-voice choral works of the north contrast with the Arabic, Greek, and African influenced strident monody of the south. In central Italy these influences combine, while indigenous traditions like narrative and ballad singing remain. The music of the island of Sardinia is distinct from that of the rest of Italy, and is best known for the polyphonic chanting of the tenores.

Folk music includes both traditional music and the genre that evolved from it during the 20th century folk revival. The term originated in the 19th century but is often applied to music that is older than that. Certain types of folk music are also called world music.

Traditional folk music has been defined in several ways: as music transmitted by mouth, as music of the lower classes, and as music with unknown composers. It has been contrasted with commercial and classical styles. One meaning often given is that of old songs, with no known composers; another is music that has been transmitted and evolved by a process of oral transmission or performed by custom over a long period of time.

Starting in the mid-20th century a new form of popular folk music evolved from traditional folk music. This process and period is called the (second) folk revival and reached a zenith in the 1960s. This form of music is sometimes called contemporary folk music or folk revival music to distinguish it from earlier folk forms. This type of folk music also includes fusion genres such as folk rock, folk metal, electric folk, and others. While contemporary folk music is a genre generally distinct from traditional folk music, in English it shares the same name, and it often shares the same performers and venues as traditional folk music. Even individual songs may be a blend of the two.