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.
The Terps broke their four-game losing streak but remained winless in conference play.
Hailey Rydberg and Alyssa Walker netted goals for the Hawkeyes as the Terps struggled to mount an attack.
The Terps had the lead in the final minute, before a goal from the Wildcats' Francesca Docters forced the game to overtime.
The Terps took their first point against a Big Ten opponent in seven games.
The Terps were unable to record a shot on goal against the Deacons in one of their worst offensive performances of the season.
Cappelletti, the Hawks' goalkeeper, registered 11 saves as the Terps couldn't break through.
"We saw a lot of fight when we went down," coach Ray Leone said.
The Terps scored in the opening minute of the game, but struggled to keep up with the Midshipmen's attack.