The Pacers, after losing the first game of the opening-round playoff series at home, now own a 2-1 lead and have regained home-court advantage. The fourth game of the series will be played Saturday in Orlando.
Indiana built a six-point halftime advantage, then took control in the third period by outscoring the Magic 32-17.
Indiana won the rebounding battle 46-33 and shot 46 percent from the field to 42 percent for Orlando.
Glen Davis led Orlando with 22 points, 16 of which came in the second period.
Orlando is taking part in the playoffs without the services of leading scorer Dwight Howard, who averaged 20.6 points a game during the regular season. Howard's year came top an end when he suffered a back injury late in the campaign.