The Lions' score was their highest final score of the season.
Penn State recorded season highs on the vault, balance beam and floor exercise.
Despite the high score, Penn State coach Steve Shephard was not satisfied with his team's performance.
"We didn't perform at the level we are capable of performing at," he said. "We weren't at the level where we should be."
Michigan's Jennifer Deiley won the all-around competition with a score of 39.325. Nittany Lions' gymnasts Kristal Uzelac and Meredith Hoover finished third and fourth, respectively.
It was Uzelac's first time competing in the all-around competition; she didn't disappoint. The freshman's 39.175 third-place score was Penn State's highest individual all-around score of the season.
"She did extremely well, especially on the floor exercise," Shephard said. "It was her best floor routine, including all she's done in practice."
The Lions began the night competing on the uneven parallel bars and scored a 48.100.
Michigan's Elise Ray won the event and also took the balance beam and floor exercise.
Senior Cecile Allen (9.850) placed second for Penn State on the bars.
On the second rotation, Penn State moved to the vault and scored 48.925 points.
Junior Lisa Clark won the event (9.875), and junior Lindsay Borkan and Hoover tied for fourth (9.775).
Penn State continued on the floor exercise for the third rotation and scored a 49.175.
It was the Lions' highest-scoring event of the night. Senior Kate Stopper (9.875) finished in second, while Uzelac (9.850) took third place.
The Lions ended on the balance beam, an event that has given them trouble lately.
The Lions scored a 48.350. Uzelac (9.850) finished an impressive night by placing second.
"The trouble on the beam continued into this competition," Shephard said.
"Our top two performers fell. It was disappointing because if we performed up to our level we could have won. But it's coulda, shoulda, woulda. It's just not good enough."