The Italian entered the final day a shot behind Wood and showed real guts to save par on the last three holes and sign for a 70 and an 11 under par total, leaving the Englishman needing a par up the last to set up a play-off.
With the 20 year old looking on from the clubhouse, Wood hit a ragged tee-shot into the trees and recorded a bogey as Paratore became the youngest winner on Tour since countryman and GolfSixes partner Matteo Manassero won the BMW PGA Championship in 2013.
Fitzpatrick had birdied the last to sign for a 68 and set the target at ten under on a rainy day in Malmö – where 86,100 fans have been in attendance this week – but ultimately fell a shot short of a play-off as he defended the title he won last year.
South African George Coetzee and Dane Thorbjørn Olesen were at nine under, a shot clear of Frenchman Matthieu Pavon and Wales’ Jamie Donaldson.
Paratore’s victory comes in his 83rd appearance and will move him into the top 150 in the Official World Golf Ranking.
“It feels really amazing right now, I’m very happy,” he said. “This win means a lot and also to win at a nice tournament like this is very good for me. I feel really great. The first win, I will remember my entire life.
“It feels amazing to be in the winner’s circle with Italians like the Molinaris, Manassero and Rocca.
“I was one behind the leader so I thought if I played well I could win. In these tough conditions I kept a good attitude until the end.