The Pacers (33-7) went ahead by 20 in third quarter, watched the Warriors whittle the lead to two and then regrouped in the closing minutes to open a five-game West Coast trip with a victory.
David West added 17 points and Lance Stephenson finished with 14 points, 10 rebounds and seven assists to help the Pacers pull away for good.
Stephen Curry had 24 points and nine assists, and David Lee had 20 points and 12 rebounds for the Warriors, who have lost four of six since their 10-game winning streak.
Indiana outshot the Warriors 45.1 to 40.7 percent and outrebounded them 52 to 45. Both teams committed 15 turnovers.
Golden State still made the Pacers work for the win.
After going down by 20 in the third quarter, Harrison Barnes hit a 3-pointer to slice Indiana's lead to 79-77 early in the fourth. The Pacers pulled away by eight before the Warriors roared back within three on Lee's free throws.
But Stephenson came back with a 3-pointer to put the Pacers up 94-87. Klay Thompson answered from long range, then George Hill hit another from beyond the arc to keep Indiana in control.
The final come back by the Warriors ended almost as quickly as it started.
Andre Iguodala made a fadaway to trim Indiana's lead to 98-94 with less than a minute left. After Iguodala stole the ball from Hill, Curry missed a contested 3-pointer short, and the Pacers put the game away on free throws.
The Warriors entered the night having played an NBA-high 25 road games compared to 17 at home. The game began a string of five straight and nine of 11 at Oracle Arena, though Golden State's home court provided little comfort against the NBA's best.
Sparked by its defense and work-to-get-a-good-shot approach, Indiana opened a 35-21 lead at the end of the first quarter. Golden State switched to a smaller lineup to try and outrun the Pacers, who instead exploited their size inside.
After going ahead by 16 points late in the second quarter, Indiana let the Warriors creep closer thanks to a series of turnovers. The Pacers led 53-40 at the half.
Indiana came out of the break just like it did to start the game, scoring the first seven of the third quarter to take a 60-40 lead that halted most of the announced sellout crowd of 19,596 to a hush.
But Curry and Co. quickly had fans on their feet and to a fever pitch after a timeout. Curry hit a jumper, then tossed an alley-hoop to Andrew Bogut before Thompson's 3-pointer started a run that brought the Warriors within eight heading to the fourth quarter.
NOTES: Warriors coach Mark Jackson said it was an honor to play on the holiday honoring the Rev. Martin Luther King Jr. "I'm not sitting here if he didn't have a dream and he didn't fight for that dream the right way," Jackson said. ... The Warriors haven't won a series against the Pacers since the 2000-01 season. ... Indiana hosts Golden State on March 4 in the only other meeting between the teams this season.