Smith will take the roster spot vacated by starter David Huff, who was optioned to the Clippers on Monday. Huff (2-9) has just one win in his last 11 starts.
This will be Smith's second stint with Cleveland this season. He was on the club's opening-day roster, but was sent to Columbus on April 30. He went 2-1 with two saves and a 1.96 ERA in 20 appearances for the Clippers.
Smith, who was 0-1 with a 7.71 ERA when he was demoted, will join the Indians for their series opener on Tuesday in Philadelphia.