Italian beaches are crowded and cities empty out in August as Italians go on vacation. You'll see signs on many shops and restaurants in Italy that say chiuso per ferie, closed for vacation, but you might also find good hotel bargains in the cities.
August 15 is a big holiday often celebrated with special events, music, parades, food, or fireworks. August is a good time for outdoor music festivals and local food festivals, look for a sagra sign. August festivals include the second running of the Siena palio race and medieval festivals like the Quintina, a jousting event in Ascoli Piceno. Find more festivals and events in August Festivals in Italy.

