Biles 'the queen' but Italy, Brazil make history with team medals
The Italians matched the silver they won at the 1928 Amsterdam Games, but achieved their best result in the modern era in Paris.
Brazil's top Olympic finish until Tuesday had been eighth.
Italy finished 5.802 points behind a dominant United States spearheaded by Biles, who achieved her fifth Olympic gold medal.
"Simone Biles has always been the queen of gymnastics," said Italy's Elisa Iorio.
"There is nobody like her, nowhere, she's a source of inspiration.
"The way she approaches competition makes you understand you should have fun. She's a point of reference for all of us."
Brazil were 6.799 off the leaders, to push Britain, the Tokyo Games bronze medallists, into fourth position.
In a thrilling finale, the silver and bronze medals were decided on the final rotation with Italy on floor, Brazil on vault and Britain on the beam.
Angela Andreoli's acrobatic routine on the floor sealed second for Italy with Brazil's Rebecca Andrade, the reigning Olympic vault champion, soaring to 15.100 to pip Britain to bronze by just 0.234.
"We are warriors," said Brazil's Flavia Saraiva, who competed with a bandage over her right eye after a fall on the warm-up on uneven bars.
"I ended up a little blind in one eye but I said 'here we go, I'm here to fight until the end'.
Andrade, 25, will compete against Biles and Sunisa Lee, the reigning Olympic all-around champion, for individual gold on Thursday.
"It's an honour to be able to compete alongside her," Andrade, 25, who took silver behind Lee in Tokyo, said of Biles.
"She's a reference, a role model for the whole world, gymnastics and athletes alike to see how happy she is to compete. That's what's sport is all about."
Italy, second in qualifying, were competing in the same group as the Americans but trailed in third 2.435 points behind after the vault with China second.
The Chinese finished fifth after the four rotations.
"It was wonderful to win this silver medal. To make it happen, we worked as a team," said Alice D'Amato, who achieved the highest score on the uneven bars with 14.633, ahead of Sunisa Lee (14.566) and Biles (14.000).
"Twenty years ago, in Athens, Brazil made it to the Olympic team final for the first time in history," said 33-year-old Jade Barbosa.
"Twenty years later, we're here with our first-ever Olympic team medal."