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.
The Terps failed to get a conference win for the second consecutive season, leading to the announcement they will search for a new coach for the 2022 season.
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.
After going two consecutive seasons without a conference win, the Terps announced that they will begin the search for a new head coach.
The Terps have to beat both Penn State and Indiana to take sole possession of first in the conference.