Ike Diogu added 19 points, including 10 in the fourth quarter, to help the Pacers win for the sixth time in seven games. Danny Granger scored 14, and Mike Dunleavy finished with 13.
Pau Gasol scored 30 points to lead Memphis and Mike Miller had 26. Chucky Atkins finished with 19 and Rudy Gay added 11.
Indiana took the lead at the end of the third quarter with 10 unanswered points, started with a pair of baskets by O'Neal.
The teams were tied at 104 with 5:23 left, but Diogu rebounded his own miss and Dunleavy followed with a pair of free throws to start a 7-1 Indiana, and Memphis never led again.