The 1994-95 NBA season was the Pacers' 19th season in the NBA and 28th season as a franchise. After appearing in their first Conference Finals, the Pacers improved their fortunes by adding Mark Jackson. The move would pay off as the Pacers won their first division title since joining the NBA. The Pacers finished the season with a 52-30 record, and Rik Smits had a career year as he averaged more he 17.9 points and 7.7 rebounds per game.
In the playoffs, the Pacers faced off against the Atlanta Hawks for the second consecutive season. The Pacers swept the Hawks in 3 straight games. As they advanced to the second round of the playoffs, the Pacers found themselves in a rematch with New York Knicks. As the Knicks had a better regular season record, the series started in New York. In game 1, the Pacers were down 6 points with 16.4 seconds left. Reggie Miller would single handedly stun the Knicks by nailing a 3 pointer and then stealing the inbounds pass and tying the game with another three pointer. Knicks fan Spike Lee was just a few feet away. Miller would add 2 free throws and give the Pacers a legendary comeback win. The Pacers lost Game 2 and the series returned to Indiana. After four games, the Pacers took a 3-1 series lead. The Knicks would bounce back and force a 7th game at Madison Square Garden. The Pacers would emerge victorious as Patrick Ewing's last second shot did not go in the basket.
With a 1-point win, the Pacers qualified for the Eastern Conference Finals for the second consecutive season. The Pacers were very familiar with their opponents. Like their first and second round opponents, the Pacers played the Orlando Magic the previous postseason. The Pacers pushed a strong Orlando team to a 7th game before losing the series. The home team would win every game in the series.