The 54-year-old coach insists that the Azzurri can still advance to the knockout stages and was disappointed that his team failed to secure all three points in Poznan
Italy scored first thanks to a fabulous goal from Andrea Pirlo but allowed their opponents to equalise as they were held to their second 1-1 draw of the tournament.
"This was a great chance, we had the lead and we took few risks before Croatia's goal," Prandelli told Rai Sport after the match.
"We wasted some opportunities in the first half. After the restart, we did not press as much, but we showed a good balance.
"We are here and we will fight until the end. We must continue to believe."
Italy will take on Republic of Ireland on Monday in their third and final Group C match.