Italy, who at the last EuroBasket knocked out Serbia in the Round of 16 and lost to France in the Quarter-Finals after coming within a whisker of victory, came up against an extraordinary Luka Doncic in the first quarter.
The Slovenian point guard closed the first quarter with 22 points, as Serbia took a 29-11 lead.
In the second, Italy cut the deficit thanks to an inspired Simone Fontecchio, who went into the break with 13 points. The Miami Heat player was well accompanied by some good shooting from Spissu and Pajola.
The Azzurri went into the half-time break 10 points behind thanks to better shooting and more intense defence. But for Slovenia, Doncic was on fire, as he had 30 points.
In the third quarter, Slovenia tried to get away on the scoreboard, but Italy, with three-pointers from Nico Melli and Fontecchio, got within nine.
However, the power of Alen Omic in the paint was responsible for Slovenia pushing the lead back up to 15 points. By the end of the third quarter, the score was 72-56.
Italy dream but come up just short
In the final quarter, Italy went on a 9-2 run to pull within 10 and get back into the game. A veteran like Danilo Gallinari took the helm of his team, while Melli joined him, putting his team within six points (72-78) with a 16-6 run.
Italy continued to cut the deficit, and a free throw by Gallinari and two by Saliou Niang left the game in the balance. Prepelic had two free throws but missed both, and Fontecchio brought Italy to within one point.
Doncic, with two free throws, put Slovenia three up again, and his team continued to defend well.
Fontecchio missed a subsequent attack, and Doncic scored two more free throws. The victory was Slovenia's, and they will face World Champions Germany in the quarter-finals.