Seven players scored in double figures for Indiana (13-11). Victor Oladipo added 16 points for the Pacers, Domantas Sabonis contributed 12 points and 12 rebounds, and Darren Collison had 10 points and 10 assists.
The Knicks (11-12) played without their two top scorers, Kristaps Porzingis and Tim Hardaway Jr., for the second consecutive game.
Porzingis is out with sprained right ankle and an illness. Hardaway is sidelined with lower left leg injury. Michael Beasley started in Portzingis' spot, and Damyean Dotson replaced Hardaway in the starting lineup.
Willy Hernangomez led the Knicks with 14 points and 10 rebounds off the bench. Beasley scored 13 points, all in the first half.
The contest was the opener of a six-game homestand for the Pacers, who snapped a two-game losing streak.
The Pacers shot a sizzling 63.4 percent (26 of 41 shots) to take a 66-40 lead at halftime. Overall, Indiana shot 53.5 percent. Indiana scored the first 12 points of the third quarter to push the lead to 78-40 and led 95-65 after three quarters.
The Knicks hit 42.9 percent (18 of 42) from the field in the opening half. For the game, the Knicks made 40 of 91 shots (44 percent).
The Knicks never led, but the game was tied three times early. After the score was 13-13, the Pacers went on an 18-6 run to take a 31-19 lead after one quarter.
NOTES: Knicks coach Jeff Hornacek said G Tim Hardaway Jr. is still being evaluated and there is no update on his lower left leg injury. Hornacek said he hopes rest will help F Kristaps Porzingis be able to play soon. New York hosts Memphis on Wednesday night. ... New York F Courtney Lee was under the weather, according to Hornacek, but he still started and scored eight points. Lee played at Pike High School in Indianapolis. ... The Pacers lost to host New York 108-101 on Nov. 5. The teams meet for the final time this season at Indiana on Feb. 11. ... Pacers G Darren Collison has led the Pacers in assists 18 times this season. ... Knicks F Joakim Noah played in just his second game all season, finishing with three points and four rebounds. He missed the first 12 games, finishing a 20-game suspension for violating the NBA's anti-drug policy.