In the years leading up to its withdrawal, Italy, under the dictatorship of Benito Mussolini, had engaged in actions that were increasingly at odds with the principles of the League of Nations. The Second Italo-Ethiopian War, which began in 1935, was a major conflict that saw Italy invade Ethiopia in an effort to expand its colonial empire in Africa. Despite international condemnation and the imposition of economic sanctions on Italy by the League, Mussolini remained resolute in his imperialistic ambitions.

The League of Nations was established post-World War I with the intention of promoting peace and cooperation among countries. However, its effectiveness was often undermined by the reluctance of major powers to enforce decisions and the lack of their commitment to collective security. The Italian decision to leave the League after facing sanctions exemplified the organization's failure to manage aggression, revealing the limitations of diplomatic interventions during this period. Mussolini’s nationalist fervor led him to disregard the League's authority, ultimately revealing the organization’s inability to prevent conflict.

The exit from the League marked a shift in Italy's foreign policy, as it began to forge closer ties with Nazi Germany. This partnership would later have far-reaching consequences as Europe moved closer to World War II. The increased militarism and imperial aspirations of Fascist Italy posed a direct challenge to the existing international system, highlighting the crisis of the League and its inability to curtail expansionist policies among its members.