Led by sixth-year head coach Bill Mallory, the Hoosiers compiled an overall record of 5–6 with a mark of 3–5 in conference play, tying for sixth place the Big Ten.
The team played home games at Memorial Stadium in Bloomington, Indiana.
On November 24, Anthony Thompson was the top vote-getter and the only repeat selection on the 1989 Walter Camp All-America team.
On December 2, a chorus of boos was heard throughout the Hoosier Dome during the Indiana–Kentucky basketball game when Andre Ware of the Houston Cougars was announced as the 55th recipient of the Heisman Trophy.
[10] The loss knocked the Hoosiers out of playing in the Freedom Bowl while others speculated it may have also contributed to Anthony Thompson not winning the Heisman Trophy.