The Nittany Lions took a 2-1 lead against Texas State after a Maddie Gordon home run at the top of the sixth inning.
Texas State then scored 4-runs and completed the game defensively, winning 4-2.
Now, the Nittany Lions fall to the losers bracket where they will face Albany at 5:30 p.m. on Saturday.
Albany was defeated by No. 16 Texas A&M in the opening round 6-2.
The Great Danes finished their season 33-12, whereas Penn State finished 34-19.
Albany and Penn State pitched their ace’s Wendi Hammond and Bridget Nemeth in the opening rounds.