The Terps will meet the Sharks on Thursday at Ludwig Field, with a chance to play Saint Louis in the second round on the line.
The Terps failed to convert a penalty in regular time and proceeded to lose the penalty shootout 3-2, falling out of the conference tourney.
Brayan Padilla's tying attempt hit the post, and the Wildcats knocked the Terps out in the Big Ten quarterfinals.
The Terps will square off with Northwestern on Sunday in the first of three possible conference tourney matches.
Ryan Blumberg's first career start and goal came at a crucial time for the Terps.
Blumberg's first goal came in his first career start, helping the Terps secure the No. 2 seed in the Big Ten tournament.
After their overtime loss to Penn State, the Terps' path to the No. 1 seed in the Big Ten tournament is more challenging than before.
The Nittany Lions rallied from two goals down and beat the Terps on Andrew Privett's deflected free kick.
The Terps have to beat both Penn State and Indiana to take sole possession of first in the conference.
The Terps dispatched the Spartans with two first-half goals despite losing midfielder Malcolm Johnston to an apparent head injury.