The Timberwolves continued an excellent start to the season with their third straight win and pulled out the victory despite letting a late lead disappear.
Dange Cunningham put Minnesota in front 94-88 with 35 seconds left by making a jumper, but George Hill's jump shot and ensuing free through brought the Pacers within three with 33 seconds remaining.
Minnesota came up empty on its next possession and Hill tied the game with a 3-pointer that came with 4 seconds left.
That set up Budinger for what turned out to be an uncontested layup.
Budinger led Minnesota with 18 points off the bench. The three straight victories equals the longest winning streak the Timberwolves had all of last season.
Derrick Williams added 15 points for Minnesota while Nikola Pekovic had 13 points and eight rebounds.
Hill hit 11-of-17 shots and scored 29 points in what was the Pacers' third straight loss.