Led by fourth-year head coach Bill Mallory, the Hoosiers compiled an overall record of 8–4 with a mark of 6–2 in conference play, tying for second place in the Big Ten.
In their season opener against Rice, Anthony Thompson rushed for 105 yards and a pair of touchdowns en route to a 35–13 Indiana win.
[4] Indiana followed their upset with a win at Minnesota after Chip Lohmiller missed what would have been a game-winning field goal in the final minutes for the Gophers.
[5] The Hoosiers then returned to Bloomington where they defeated Michigan for the first time since the 1967 season to move into first place in the Big Ten standings.
[7] In November, the Hoosiers accepted an invitation to play in the Peach Bowl against Tennessee of the Southeastern Conference[8] Against the Volunteers, Indiana fell behind by a score of 21–3.