The Timberwolves rallied from a 20-point deficit after one quarter to end a six-game losing streak.
Jefferson scored 29 points and grabbed 13 rebounds. Telfair played all 48 minutes and scored 27 points with 11 assists while Walker had 23 off the bench.
Indiana, which had won its previous three games, was led by Mike Dunleavy with 30.
Minnesota outscored Indiana in the second period 40-15 and then went on a nine-point run in the third period to take command. The Pacers closed within 10 in the final quarter before the Timberwolves put together a 10-2 outburst.
Indiana's domination of the first period included 17 consecutive points in less than two minutes.
Minnesota, which now embarks on a five-game road trip, shot 53 percent from the field.