The Bucks' playoff hopes all but vanished in their third straight loss.
Last week Milwaukee was within a win of moving into a tie for the eighth and final post-season spot in the Eastern Conference, but four losses in five contests have dropped the Bucks three games behind eighth-place Philadelphia with four to play.
Indiana has won seven in a row and is headed for the No. 3 seed in the East, setting up a potential first-round meeting with the crumbling Orlando Magic.
The Pacers led by 13 points with 3:45 to play Thursday and held off a late Milwaukee charge that briefly sliced the margin to five.
Granger scored 29 points, Hill had 21 and West produced 20 points to go with 14 rebounds.
Swim Week Miami Beach 2014 [PHOTOS]