The name of the breed is a reference to the breed's popularity in renaissance Italy. Mummified dogs very similar to the Italian Greyhound (or small Greyhounds) have been found in Egypt, and pictorials of small Greyhounds have been found in Pompeii, and they were probably the only accepted companion-dog there. As an amusing aside the expression 'Cave Canem' (Beware of the dog) was a warning to visitors, not that the dogs would attack but to beware of damaging the small dogs.

Although the small dogs are mainly companionship dogs they have in fact been used for hunting purposes, often in combination with hunting falcons.

The Italian Greyhound is the smallest of the family of gazehounds (dogs that hunt by sight). The breed is an old one and is believed to have originated more than 2,000 years ago in the countries now known as Greece and Turkey. This belief is based on the depiction of miniature greyhounds in the early decorative arts of these countries and on the archaeological discovery of small greyhound skeletons. By the Middle Ages, the breed had become distributed throughout Southern Europe and was later a favorite of the Italians of the sixteenth century, among whom miniature dogs were in great demand. It is, in fact, due to its popularity in Italy at this time that the breed became known as the "Italian Greyhound." From this period onward the history of the breed can be fairly well traced as it spread through Europe, arriving in England in the seventeenth century.