The 2020–21 Penn State Lady Lions basketball team represented Pennsylvania State University during the 2020–21 NCAA Division I women's basketball season.

The Lady Lions were led by second-year head coach Carolyn Kieger and played their home games at the Bryce Jordan Center as members of the Big Ten Conference.

As the tenth seed in the Big Ten tournament, they were defeated by Michigan State in the Second Round.

They lost in the first round of the Big Ten women's tournament to Minnesota.

The NCAA tournament and WNIT were cancelled due to the COVID-19 outbreak.