Occhetto was born in Turin. He served as secretary of the Italian Communist Youth Federation, to which he had belonged starting from 1953, from 1963 to 1966. Subsequently, he was the regional secretary of the PCI in Sicily, where he distinguished himself for his war against any kind of mafia.
In 1986, Occhetto was appointed as national coordinator of the PCI and became its secretary in 1988, succeeding Alessandro Natta. Under his leadership, the party witnessed the collapse of both the Berlin Wall and the Soviet Union. He responded by declaring the Communist state experience over, and persuaded the PCI to dissolve and refound itself as a democratic socialist party, the PDS. This political shift, known in Italian politics as the Svolta della Bolognina (the name derives from the celebration of a partisan battle in World War II), during which he announced that the PCI would change its name, logo, and orientation, was accepted by approximately 70% of the members at the 20th National Congress held on 8 February 1991.
Occhetto was married to the activist and former actress Elisa Kadigia Bove, with whom he had two sons, Malcolm and Massimiliano (both born in Sicily); he was later married to fellow party member Aureliana Alberici.[2]