The Cavaliers clinched the Central Division title for the second year in a row, marking the first time in franchise history the team has captured the crown in back-to-back seasons.
Winning the division crown had long become a foregone conclusion for the Cavaliers, who went into Wednesday's action with a 15 1/2-game lead over second-place Milwaukee.
Cleveland had as much as an 18-point cushion late in the third period, but Indiana closed within one on a jumper by Earl Watson with 4:52 to play.
The Cavaliers then ran off their seven straight points to turn back Indiana's charge. LeBron James completed the streak with a field goal that made it 95-87 with 2:30 remaining.
James led Cleveland with 32 points and Antawn Jamison added 17. The Cavaliers have won five in a row.
The Pacers have dropped nine straight road games, having won just seven times away from home this season. Roy Hibbert had 20 for Indiana.
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