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Italy — Naturalization
Possible
This is the misunderstanding that costs people the most years on this route, so plainly: being in Italy and being legally resident in Italy are different things, and only the second one counts.
What the law asks for is legal residence — iscrizione anagrafica, your registration with the comune where you live, held on a permit or status that entitles you to it. Time in Italy without that registration does not count towards any of the terms, however long it has been and however real the life you have built there. The clock starts on the registration date, not on your arrival.
So the honest answer is usually not "no" but "the count has not begun, and the thing that begins it is a step you have not taken". Getting registered is the whole job, and it turns on your immigration status rather than on your intentions — which is why the two questions have to be answered together.
What the terms are once it does start: two years if a parent or grandparent is or was an Italian citizen by birth, three if you were born in Italy, four as an EU citizen, five as a recognised refugee or stateless person, ten otherwise.
Tell us what status you hold in Italy, how long you have been there and whether there is Italian ancestry in your family. Those three answers decide both whether you can register and which term you would then be on.
Whatever the term, three things are required of everyone and all three are worth starting early. A B1 Italian certificate from one of the four recognised providers — a real exam, with sittings that book out. Proof of adequate income across the three years before you apply. And a clean record, with certificates from Italy and from every country you have lived in as an adult. Those last ones expire, so they come last; the language certificate does not, so it comes first.
And one thing that is not a requirement but decides most cases: continuity. What counts is unbroken registration with a comune. A gap — a year deregistered, a move handled badly, a period nobody recorded — does not pause the clock, it restarts it.