After an opening draw against Ukraine, Gareth McAuley's side must now tackle the Azzurrini, who fought back from behind to beat Norway.
Match preview
Taking part in just their second Under-19 Euros, following a previous appearance on home soil 19 years ago, Northern Ireland picked up their first-ever point at the tournament by holding Ukraine to a goalless stalemate on Monday.
After finishing bottom of the group in 2005, with three straight defeats, McAuley's current squad have already improved on their predecessors' performance - albeit several saves were required from goalkeeper Pierce Charles to keep the Ukrainians at bay.
Now winless in 10 matches after settling for a point at Inver Park, Northern Ireland will need to win at least one of their two remaining Group A games if they are to claim a precious top-two finish.
That would not only see them through to the semi-finals but also secure one of Europe's qualifying spots for next year's Under-20 World Cup in Chile.
Should they lose on Thursday, a third-place finish may be the best they can then hope for, resulting in an early exit from their home tournament and offering only the consolation of a World Cup playoff against the third team in Group B.
Italy, meanwhile, are one win away from achieving both minimum objectives, while victory in Larne would also keep them on course to defend the title they won this time last year.
It was not a smooth start against Norway, though, as the Azzurrini conceded a careless 35th-minute goal before impressively turning the game on its head.
Luca Di Maggio curled in their equaliser just before half time, then AC Milan's Kevin Zeroli completed the comeback six minutes into the second half at Seaview Stadium.
En route to these finals, Italy topped their qualifying group with maximum points, and having now scored 15 times in their last five matches, Bernardo Corradi's side are among the favourites to lift the trophy later this month.
Beating Northern Ireland would take any pressure off Sunday night's meeting with final Group A opponents Ukraine, with the hosts set to face Norway at the same time.
Northern Ireland Under-19s European Under-19s Championship form:
D
Italy Under-19s European Under-19s Championship form:
W
Italy Under-19s form (all competitions):
W
L
D
W
W
W
Team News
Should Gareth McAuley opt to shake things up in attack after his team's goalless opener, Reece Evans could come in for Everton striker Braiden Graham up front, but few changes are expected to Northern Ireland's starting XI on Thursday.
Francis Turley was a late withdrawal from the squad, after being selected for Celtic's pre-season trip to the United States, while Ruairi McConville and Ryan Donnell are both absent due to injury.
Sixteen-year-old Dylan Stitt of Luton Town replaced Turley but is expected to start on the bench once again.
Meanwhile, Bernardo Corradi should turn to Simone Pafundi for attacking inspiration at Inver Park: Italy's five-goal top scorer in qualifying, the Udinese forward produced two assists against Norway last time out.
Pafundi was once called up to the senior squad by Roberto Mancini but has yet to make a mark in Serie A, spending much of last term on loan to Swiss Super League side Lausanne-Sport.
AC Milan starlet Francesco Camarda heads a queue for promotion from the bench, and if selected would join clubmate Kevin Zeroli in the final third.
Northern Ireland Under-19s possible starting lineup:
Charles; Briggs, McCallion, Lennon; Barr, McClure, Trickett, Thompson; Morrison, Glenfield; Graham
Italy Under-19s possible starting lineup:
Marin; Magni, Mane, Chiarodia, Bartesaghi; Di Maggio, Lipani, Ciammaglichella; Zeroli; Pafundi, Camarda