With the score deadlocked at 95, Memphis went on a 14-2 run to gain control of the contest in the late stages.
Tarence Kinsey had 28 points, four rebounds and three assists; Hakim Warrick had 20 points and 11 rebounds; and Pau Gasol and Dahntay Jones scored 15 points apiece for the Grizzlies, who broke a six-game losing streak.
Carmelo Anthony led Denver with 28 points, four rebounds and five assists. Nene Hilario had 22 points and 10 rebounds; J.R. Smith scored 19; Allen Iverson had 16 points and five assists -- but six turnovers -- and Marcus Camby added 14 points and 11 rebounds for the Nuggets, whose eight-game winning streak was broken.
Denver remained the sixth seed in the Western Conference playoff race, and will play Phoenix or San Antonio in the opening round.