Teague, who was whistled for a technical foul, struggled most of the night, missing 13 of 20 shots and committed seven turnovers. But the McDonald's All-American came through in the end, pulling up for a midrange jumper with .9 seconds remaining for the win. Teague ended with 18 points.
For a while, it looked like Kentucky would get a rare victory in the series. The Kentucky stars built an 11-point lead midway through the second half after leading by eight at the break, but couldn't hold on down the stretch against a deep and talented Indiana team.
Butler signee Andrew Smeathers made a few key second half baskets, including a three-pointer with 22.1 seconds left that put Indiana ahead 103-100.
LSU signee Anthony Hickey tied the score at 103 with a three, before Teague's game-winning basket. Hickey, who hit some tough shots in the second half, finished with 19 points.
Louisville-bound center Zach Price sat most of the first half after picking up three fouls, but was more effective after the break to finish with 6 points and four rebounds in 15 minutes. Price's offensive board putback with 1:20 remaining gave Kentucky a 100-98 edge.
Ryan Taylor, originally from Indianapolis, Ind., played hard for Kentucky, finishing with 17 points and six rebounds.
Butler signees Andrew Smeathers and Kameron Woods also showed promise for Brad Stevens NCAA runner-up Bulldogs. Smeathers, a 6-7 forward, hit two three's late in the game and ended with 21 points, while the 6-9 Woods had five points, eight boards and two blocks in the first half with Price sidelined with foul trouble.
Indiana-bound Cody Zeller fought through foul problems on his way to nine points and nine rebounds. Fellow Hoosier-bound guard Remy Abell added 12 points for the Kentucky All-Stars.