"Justin Smith and I had a conversation recently where we discussed his future, the feedback from the NBA and he has made the decision to graduate and transfer for his final season of eligibility," coach Archie Miller said in a statement.
"I support his decision and wish Justin and his family all the best in this next chapter. I'm proud of his growth as a person, he's a great young man and has been a terrific role model off the court and in the classroom. He obtained his degree in three years from IU's Kelley School of Business and we thank him for all his contributions to Indiana University and our program."
Smith started all 32 games last season for Indiana, helping lead the Hoosiers to 20 wins and what would have been an NCAA tournament appearance. He averaged 10.4 points and 5.2 rebounds, while also contributing on the defensive end. Smith was up and down offensively during BIg Ten play, but finished the season hitting double-figures in two of the Hoosiers' final three games.
Heading into next season, Miller is expected to make his first NCAA tournament since taking over in Bloomington. Indiana is ranked No. 23 in ESPN's Way-Too-Early Top 25, moving into the rankings after five-star point guard Khristian Lander decided to reclassify into 2020 and enroll in school in the fall.
Without Smith in the lineup, the Hoosiers have a number of options. They could turn to returning forwards Race Thompson or Jerome Hunter, or go with a two-point guard lineup with Lander and start Rob Phinisee.