The Kings erased a 14-point halftime deficit and forced double overtime, but their offense faltered as they fell to the Pacers 106-98.
The Kings scored seven points in 10 total minutes of overtime.
Marcus Thornton hit game-tying three pointers at the end of regulation and the first period of overtime en route to his game-high 26 points.
DeMarcus Cousins scored 21 points and grabbed 13 rebounds. He only turned the ball over once.
The Pacers had six players score in double figures, led by 18 each from David West and George Hill.