Christian Watford scored a game-high 19 74, on Sunday to end the regular season.
Will Sheehey added 16 points and Cody Zeller finished with 13 points and seven rebounds for the Hoosiers (24-7, 11-7 Big Ten), who claimed sole possession of fifth place in the Big Ten with the win.
They will play 12th-seeded Penn State in the opening round of the Big Ten Tournament on Thursday.
Lewis Jackson paced the Boilermakers (20-11, 10-8) with 17 points and Robbie Hummel contributed 16 in defeat. Purdue, seeded sixth in the conference tourney, will play No. 11 seed Nebraska on Thursday.
Indiana shot 52.8 percent (28-of-53) from the field overall and led by as many as 18 in the second half, but Purdue made it interesting late.
Down 75-62 with under three minutes remaining, Terone Johnson knocked down a jumper, followed by a Jackson fastbreak layup after a steal.
Watford hit a pair from the charity stripe for the Hoosiers, but D.J. Byrd immediately responded with a bucket.
Watford then turned it over, resulting in a trey from Purdue's Ryne Smith that made it 77-71.
With just 1:20 to play, however, the Boilermakers were forced to foul, and Indiana made a sufficient number of free throws down the stretch to hold on to the lead.
Paced by 66.7 percent (20-of-30) shooting from the floor in the first half, the Hoosiers enjoyed a 49-34 advantage at intermission.
Indiana finished the regular season on a four-game winning streak...IU's Victor Oladipo had nine points and eight rebounds...Purdue made 4-of-9 three- point attempts in the second half...The Boilermakers lead the all-time series 112-86. Indiana won both meetings this season.