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Steele, a 6-foot-3 freshman guard, tore his anterior cruciate ligament and meniscus after landing awkwardly while trying to finish a layup. He will have surgery in about two weeks, according to the school. The recovery time is expected to be five to six months.
Steele recently moved into the starting lineup, taking over for Ravern Johnson. He was averaging 5.7 points and 1.5 rebounds through 27 games, starting six.
Mississippi State (14-13, 6-7 Southeastern Conference) travels to face Tennessee (17-11, 7-6) on Saturday.