Indiana won for the sixth time in seven games, although the Pacers received some bad news when they learned prior to the contest that Danny Granger would be lost for the season due to a knee injury.
The game was deadlocked at the half, but Indiana outscored Dallas 34-17 in the third period to seize control.
Dallas had won three in a row and missed a chance to make up ground on the Los Angeles Lakers in the race for the final playoff spot in the Western Conference. The Lakers, who lost to Milwaukee Thursday, lead Utah by a half game and Dallas by 1 1/2 games in the chase for the No. 8 seed.
David West scored seven points for Indiana after missing six games with a back injury.
Dirk Nowitzki had 21 points to lead Dallas, which had captured nine out of 12.