The game is scheduled at 7 p.m. and will be televised nationally on either ESPN or ESPN2.
This will mark the first time U-M will have played host to a Big Ten opponent in primetime.
"The night game atmosphere created by our fans has been electric and we expect that same type of energy for our first-ever conference night game against Penn State," said Brady Hoke in written statement. "Our players really enjoy playing in primetime at Michigan Stadium."
Michigan's first two night games were against non-conference rival Notre Dame in 2011 and 2013, both Maize & Blue victories.