Cody Zeller and Christian Watford will remain at Indiana for the 12-13 season.
Watford was an honorable mention All-Big Ten.
"I'm looking forward to the opportunity to complete my degree and to continue restoring the winning tradition at IU," said Watford. "I believe in Coach Crean and our staff and I am eager to lead my new teammates and build on what we started."
Zeller was the Big Ten Freshman of the Year.
"I grew up hoping that one day I would get the opportunity to play in the NBA, but at this point, I'm not ready for my college experience to be over," said Zeller. "Coach Crean and my family were very supportive and helpful as I made my decision. My college experience at IU this year has exceeded my expectations, on and off the court. I look forward to playing at Assembly Hall next year in front of the greatest fans in the country. Go Hoosiers!"
Indiana returns all five starters and have been chosen as a preseason No. 1 by several publications.