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Gelato is typically made with fresh fruit or other ingredients such as pure chocolate, nuts, small confections or cookies. Gelato made with water and without dairy ingredients is also known as sorbetto or sorbet. Traditionally, milk based gelato originated in northern Italy, while the fruit and water based sorbetto came from the warmer parts of southern Italy.

North American style ice creams contain more butterfat than gelato, ranging from 15% to 18% since more cream is used. Like high end ice cream, good quality gelato combines high quality ingredients with milk and cream, soy milk, or water. Gelato is usually made with whole milk which is 3–4% butterfat. Unlike ice cream, gelato ingredients are not homogenized, which results in a product that melts faster than ice cream.

Gelato is served from a different freezer than American style ice cream—a forced air freezer—which is usually held at about -15°C. This allows the gelato to be served immediately after being extruded from the gelato machine—the "forced air" blowing around holds the product at a consistent temperature. Much of the gelato experience lies in its semi-frozen consistency.