With Mills limping on the sideline and the Penn State offense limping under Matt Senneca, who completed just six of 23 passes for 52 yards and three interceptions, the Illini erased a 21-7 halftime deficit.
After a woeful start, Illinois quarterback Kurt Kittner led his team back, sneaking into the end zone from a yard out to tie the score at 21 a minute into the fourth quarter.
"We made plays when we needed to make them," said Kittner, who completed 14 of his last 22 passes. "It's a great team effort all around."
The Lions tried a variety of tactics to overcome the loss of Mills, with varied successes. Eric McCoo hooked up with Tony Johnson on a halfback pass that went for a 63-yard touchdown in the second quarter, but those were the last points the Penn State offense would put on the board.
As Senneca continued to struggle, Penn State tried the ground game in the second half, using the legs of Eddie Drummond, Larry Johnson, Eric McCoo and even Senneca. Penn State was able to move the ball in this fashion but did not score until Johnson's 97-yard kickoff return put Penn State up 28-27 with 3:29 to play.
The stage was set for Kittner, who then marched the Illini 80 yards to paydirt in nine plays, including a clutch 30-yard completion to Brandon Lloyd on third-and-10.
Antoineo Harris led Illinois with 98 yards rushing, 71 of those coming in the second half. The Illini took advantage of Penn State's offensive ineptitude and wore down the Lions' defenders, who said they weren't tired but admitted they didn't pull their weight.
"We knew we could have stopped them. We stopped them in the first half," said Lions safety Shawn Mayer. "It's just a matter of making plays."
Put in an early hole, Illinois slowly but surely clawed its way back, scoring 19 points in the final quarter to defeat a Paterno-coached team for the first time.
"It shows the heart and character of this football team," said Illini head coach Ron Turner.
Bruce Branch opened the scoring for Penn State with a 71-yard punt return for a touchdown, giving him the school record in that category.
Mills' suffered the high-ankle sprain on Penn State's final drive of the first quarter. He stayed in the game until the Lions scored on McCoo's spinning one-yard touchdown run, then limped off the field. His status for Saturday's game against Indiana has not been determined.
Penn State needs victories in each of its last three games to finish the season with a winning record and become bowl eligible.