Danny Granger scored 32 points, helped by 6-of-8 shooting from behind the arc, and blocked Chandler Parsons' potential game-winner at the buzzer, as the Pacers escaped Toyota Center with a 104-102 overtime win over the Rockets.
Roy Hibbert totaled 15 points and nine rebounds for the Pacers, who were coming off a loss at San Antonio on Saturday.
Goran Dragic had a team-high 22 points for Houston, which has split its last 10 games.
The Rockets, who were outscored at the free throw line, 24-5, are a game ahead of Utah for the eighth seed in the Western Conference.
Indiana, currently the No. 5 seed in the Eastern Conference playoff race, went ahead late in regulation when Granger, with a hand in his face, buried a deep jumper to break tie at 89.
Patrick Patterson missed at the other end, and Darren Collison grabbed the rebound before being fouled with 19 seconds remaining.
Collison, an 83-percent free throw shooter coming in, went 1-for-2 at the foul line on two straight possessions around Dragic's running bank shot.
Dragic drove the lane again after Collison's missed a free throw with 14.9 seconds left and drew a foul on Paul George. Dragic made both from the line with 10.4 seconds showing, and David West was off to the right on his 18-foot buzzer-beating attempt.
In the extra frame, George converted a three-point play and Granger hit from long range the next time down to give the Pacers a 101-95 advantage with just over two minutes to play.
Again the Rockets made it interesting as Dragic drained a three-pointer and Parsons scored off a steal to cut the deficit to 101-100 with 39.4 seconds showing.
Another miss at the foul line by Collison with 10.5 seconds remaining gave the Rockets the ball back for a chance to tie or win, but Granger got a piece of Parsons' three-point attempt as the buzzer sounded.
Granger scored 10 points in the first quarter, which ended with the Pacers holding a 27-23 lead.
The Rockets never led in the second and trailed 44-42 at halftime, but came out and shot 67 percent (14-of-21) from the field in the third to go on top, 73-63 heading to the fourth.
Granger ended a 10-0 run midway through the fourth with a pair of three- pointers, the last yielding an 81-80 edge.
Collison finished with 11 points, seven assists and five rebounds, while West chipped in 10 points for Indiana, which won the battle on the glass, 54-44...Courtney Lee scored 20 points for Houston, which got 14 from Parsons and 13 from Luis Scola...Indiana turned it over 17 times.