The 1996–97 NBA season was the Pacers' 21st season in the National Basketball Association, and 30th season as a franchise. During the offseason, the Pacers acquired Jalen Rose from the Denver Nuggets. Injuries and sluggish play would hamper the Pacers all season long as Rik Smits only played just 52 games, and Derrick McKey appeared in just 50 games. They missed the playoffs for the first time in eight years with a disappointing 39–43 record, sixth in the Central Division. Reggie Miller averaged 21.6 points per game and led the league with 229 three-point field goals. At midseason, the Pacers brought back playmaker Mark Jackson in exchange for Eddie Johnson after a brief stint with the Denver Nuggets. Jackson would remain with the Pacers until 2000, where the team reached the NBA Finals. He also led the league with 11.4 assists per game.

Following the season, head coach Larry Brown, who won his 600th game during the season was forced to resign. He would later on take a coaching job with the Philadelphia 76ers. Also following the season, top draft pick Erick Dampier was traded to the Golden State Warriors.

Via draft

Via trade

Via free agency

Via trade

Via free agency

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