Paul George added 14 points, eight assists, eight rebounds and five steals and George Hill scored 17 for the Pacers, who host Game 4 of the best-of-seven series tomorrow.
Indiana has yet to lose at home in the post-season.
Carmelo Anthony was the only player to reach double figures for the Knicks with 21 points on 6-of-16 shooting.
After blitzing the Pacers with a 36-4 run over the third and fourth quarters to run away with Game 2, New York came out flat and was held to 35.2 percent shooting.
The Knicks were within 44-41 after Anthony’s jumper less than four minutes into the third before Indiana began to gain some separation.
George hit a technical free throw and Hibbert made it a three-point possession with a basket to spark a 14-3 run over the next five minutes.
New York pulled back to within 62-51 when Amar’e Stoudemire hit a three-pointer as the buzzer sounded to end the third, but never got closer than eight points in the fourth.
Hill’s three-pointer with 2:16 left gave the Pacers their biggest lead of the night at 80-64 and they were able to coast to the finish.
Marc Gasol had 20 points and nine rebounds and hit the tie breaking free throws with 63 seconds to play as Memphis defeated visiting Oklahoma City 87-81 to take a 2-1 lead in the best-of-seven Western Conference semi-final series.
Tony Allen and Mike Conley scored 14 points apiece and Zach Randolph grabbed 10 rebounds as the fifth-seeded Grizzlies won their second straight game. Game Four is on Monday in Memphis.
Kevin Durant had 25 points and 11 rebounds and Reggie Jackson had 16 points and 10 rebounds for the top-seeded Thunder, who shot just 36.4 percent from the field.
Durant failed to score 30 points for the first time in the series and missed two free throws with 39.3 seconds left and Oklahoma City trailing by four points.
The Thunder trailed by seven midway through the final quarter and finally caught the Grizzlies at 81 on a three-pointer by Derek Fisher with 1:58 to play.
Gasol hit the go-ahead free throws 55 seconds later and Conley hit four straight from the line to push the lead to six with 15.5 seconds left.
Memphis had a 10-point lead early in the second quarter after Jerryd Bayless scored eight straight points. Oklahoma City recovered for a 45-44 lead at the break and the contest was tied at 50 with less than eight minutes left in the third quarter before the Grizzlies ran off seven straight points.