The 1985–86 Michigan Wolverines men's basketball team represented the University of Michigan in intercollegiate college basketball during the 1985–86 season. The team played its home games in the Crisler Arena in Ann Arbor, Michigan, and was a member of the Big Ten Conference. Under the direction of head coach Bill Frieder, the team repeated as the Big Ten Conference Champion. The team earned the number two seed in the 1986 NCAA Division I men's basketball tournament where it advanced one round before losing. The team began the season ranked number three and ended the season ranked number five after peaking at number two in the Associated Press Top Twenty Poll. It was ranked in all seventeen weeks, and it also ended the season ranked number five in the final UPI Coaches' Poll. Butch Wade a