With almost all ballots counted, the “No” vote stood at almost 54 per cent, compared to just over 46 per cent for “Yes”, according to official figures.
During the campaign, Ms Meloni had insisted the referendum, which concerned the role and oversight of judges and prosecutors, was not about her own leadership of the government.
And she repeated this on Monday, local time, saying “the Italians have decided”, but adding that “this does not change our commitment to continue”.
Yet she had forcefully campaigned for the proposals, alongside her coalition partners in the hard-right government, while the opposition parties campaigned for a “No”.
Daniele Albertazzi, a professor of politics at the UK’s University of Surrey, told AFP it was a “bad, bad result” for Ms Meloni.
Italian Prime Minister Giorgia Meloni has conceded defeat in a government-promoted referendum to reform the justice system.
The referendum sought to separate the role of judges and prosecutors and change their oversight body, but Italians look set to narrowly reject the measure.
The news is a major blow to the authority of Ms Meloni, widely viewed as one of US President Donald Trump’s strongest allies in Europe, ahead of elections next year.
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