Hardaway had a jumper to cap a 10-0 Michigan run that erased the last Memphis lead and ended the first half with Michigan ahead 37-31.
An Adonis Thomas jump shot and two Antonio Barton free throws put the Tigers up 31-27 with 3:01 left in the half. But Hardaway fed Stu Douglass for a 3-point shot and Trey Burke's free throw tied the score.
Burke added a layup off an assist from Douglass and turned another pass from Douglass into a basket before Hardaway's jumper with 33 seconds left in the half made the score 37-31.
The Wolverines (4-0) didn't allow Memphis (1-1) closer than five the rest of the way.
Hardaway's 21 points came on 6-of-12 shooting and he hit 9-of-10 free throws. Burke added 14 points.
Memphis was led by Charles Carmouche's 14-point effort. No other Tigers made double figures as Memphis shot just 33.3 percent for the game.