Dallas opened a 35-26 advantage on Jose Barea's 3-pointer to end the first quarter. The Mavericks pushed the lead to 22 on Nowitzki's free throw in the second quarter, but the Pacers trimmed the deficit to 12 before intermission.

Jason Kidd's 3 gave Dallas an 84-64 advantage with 4 minutes left in the third quarter, and Terry's dunk extended the lead to 26 later in the period.

"I don't really know what happened, but our offense really seems to click, really everybody is shooting the ball," Nowitzki said. "The last two games we've done a good job. If it wasn't there, swing the ball, pick-and-roll, swing it back and just take our time."

Carlisle left some promising words for discouraged Pacers fans.

"The team has a very bright future and Jim O'Brien is a terrific coach," he said. "Everybody talks about New York and their cap space, but in another year or two, this franchise is going to be very well positioned to take some quantum leaps because of their cap situation. This will be a more desirable place for players to come."

Carlisle seemed content with his current coaching position.

"We're doing some good things," he said. "This time last year, we were laboring to play well and win games, so we've made strides. It's all about daily improvement and trying to get to the level of being one of those ultimate contenders. The important thing is to just keep building."

NOTES: Pacers F Tyler Hansbrough bruised his left knee in the third quarter and did not return. ... Dunleavy, who had surgery to remove a bone spur in his right knee, played 15 minutes. ... Indiana has missed the playoffs the past three years. ... Dallas has won seven of eight, with the only loss coming against Golden State on Nov. 24.