The Pacers were first established in 1967 as a member of the American Basketball Association (ABA) and became a member of the NBA in 1976 as a result of the ABA-NBA merger.

On November 14, 1973, Bob Netolicky was playing for the San Antonio Spurs when they lost at home to the Indiana Pacers on a last-second shot. The Spurs protested the loss, and the ABA Commissioner ruled for San Antonio. The Pacers' last-second basket was disallowed, and the remaining 30 seconds of the game (which was the portion that San Antonio had protested) was ordered replayed immediately before the next Pacers-at-Spurs game, on December 2, 1973. By that time, however, Netolicky had been traded to Indiana, so he played the final 30 seconds of regulation for the Pacers, plus the subsequent overtime.

Reggie Miller was known for his precision three-point shooting, especially in pressure situations and most notably against the New York Knicks, for which he earned the nickname "Knick Killer".

Lance Stephenson had a breakout season in 2013-14, posting career highs across the board in his second year in a starting role. He finished the regular season with a league-high five triple-doubles and finished second in NBA Most Improved Player Award voting.

After retiring as a player, Larry Bird served as head coach of the Indiana Pacers from 1997 to 2000. Despite having no previous coaching experience, Bird led the Pacers to a 58-24 record in the 1997-98 season and was named NBA Coach of the Year. He later led the Pacers to a berth in the 2000 NBA Finals, before retiring with a franchise-record .687 winning percentage.

Danny Granger averaged 7.5 points (2005-06), 13.9 points (2006-07), 19.6 points (2007-08), and 25.8 points (2008-09). In 2008-09, he became the first Indiana player to average 25 points per game in more than 30 years and was named the NBA's Most Improved Player.

The "Malice at the Palace" was an altercation that occurred in a game between the Indiana Pacers and the defending champion Detroit Pistons on November 19, 2004, at The Palace in Auburn Hills, Michigan. After the game, the NBA suspended nine players for a total of 146 games, leading to the players losing $11 million in salary. The Associated Press called it "the most infamous brawl in NBA history."

On February 27, 1998, the Pacers destroyed the Portland Trail Blazers 124-59, becoming the only team in NBA history to double their opponent's score.

Hoping to boost sagging attendance in their early NBA years, the Pacers re-acquired McGinnis, a former Pacers star from their ABA days, by trading away a young, high-scoring forward named Alex English. However, McGinnis was only a shadow of his former self and was out of the league by 1982. Meanwhile, English went on to become one of the most prolific scorers in NBA history.

George McGinnis, Mel Daniels, and Roger Brown formed the core of the Pacers teams during the early 1970s, winning the ABA Finals in 1970, 1972 & 1973. Fittingly, all three had their numbers retired on November 2, 1985.