Smith and Jennings were arrested on misdemeanor charges after a fight at an alumni homecoming party in Jeffersonville, Ind., university spokesman Kenny Klein told the Louisville (Ky.) Courier-Journal Monday.
The two players were arrested Saturday and released Sunday from the Clark County jail, university officials said, adding Jennings was hit with a police Taser during the arrest.
"We are aware of the matter, and it will be handled internally," head basketball coach Rick Pitino said.
Smith, a senior from Wauwatosa, Wis., was named co-captain for this season after averaging 7.8 points in 35 starts last season. Jennings, a sophomore from Sacramento, Calif., averaged 4.2 points a game last season.