Jeremiah Rivers' 3-point play with 1:12 to go broke a 61-61 tie, and Indiana held on to defeat Michigan 71-65 Thursday.
The Hoosiers (7-6, 1-0 Big Ten) ended a four-game home losing streak against conference foes and won their first conference opener on New Year's Eve since 1938.
Indiana was led by Verdell Jones with 20 points and eight rebounds. Christian Watford had 19 points.
Zack Novak scored 18 and Stu Douglass 16 for the Wolverines (6-6, 0-1), who have lost six of nine.
Michigan spent much of the second half in foul trouble, and trailed for nearly 27 minutes before finally retaking a 56-55 lead on Novak's 3-pointer with 3:16 to go.
But the Hoosiers took the lead for good on Rivers' looping layup, which drew a fifth foul on DeShawn Sims. The free throw gave Indiana a 64-61 lead and the Hoosiers never trailed again.
