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Although item fit analysis is a central component of practical applications of Rasch models, the literature includes inconsistent recommendations and wide-ranging practices related to the interpretation of item fit statistics—presenting opportunities for confusion and potentially inappropriate interpretation and use of these statistics. We use a systematic review to identify current practices for evaluating and interpreting item fit in Rasch model applications. Then, we apply the identified methods to a real dataset to demonstrate their implications in a practical setting. Finally, we use a simulation study to systematically examine the impact of different fit evaluation procedures under different conditions. This study provides insight and guidance to help applied researchers make informed decisions about item fit interpretations under various conditions.