All the Indiana senior did was score a career-high 30 points on 13-of-20 shooting to lead the Hoosiers to a crucial 93-86 victory over the Hawkeyes at Assembly Hall.
For Iowa it was the Hawkeyes' third loss in a row.
It was also Tom Crean's 100th career win at Indiana.
Sheehey was on fire from the start. He scored 19 points in the first half alone. His previous career high was 22 on two occasions, the most recent against Notre Dame this season.
Indiana (16-12, 6-9 Big Ten)trailed by three at 52-49 after a wild first half.
The Hoosiers still trailed 66-64 with 9:48 to play but then took control. A three-point play by Stanford Robinson with 6:30 remaining put IU up by eight at 77-69.
Robinson also had a career-high with 17 points.
The Hoosiers built the lead up to 10 at 88-78 with 39.9 seconds remaining. But then the Hoosiers had to avoid some anxious moments inbounding the ball and shooting free throws down the stretch.