The 2002–03 NBA season was the Pacers' 27th season in the National Basketball Association, and 36th season as a franchise. The Pacers got off to a fast start winning 14 of their first 16 games. However, the team struggled losing 12 of 13 games between February 16 and March 12. Late in the season, the Pacers signed free agent All-Star point guard Tim Hardaway, who would appear in ten games with the team. The Pacers finished second in the Central Division with a 48–34 record. Head coach Isiah Thomas, Jermaine O'Neal and Brad Miller represented the Eastern Conference during the 2003 NBA All-Star Game. That game was perhaps known as a storybook ending for Michael Jordan, but O'Neal ruined the moment, fouling Western Conference All-Star Kobe Bryant, who attempted a 3-pointer. Bryant hit 2 of 3 free throws to send the game into overtime. The West won 155–145. In the first round of the playoffs, the Pacers lost in six games to the 6th-seeded Boston Celtics.

After the season, it was announced that Thomas would not be returning as head coach, replacing him with Rick Carlisle for the next season. Thomas would later return to coach the New York Knicks in 2006. Also following the season, Miller was traded to the Sacramento Kings, Ron Mercer was sent to the San Antonio Spurs and Hardaway retired.

Bold = All-Star selection

(3) Indiana Pacers vs. (6) Boston Celtics Last Playoff Meeting: 1992 Eastern Conference First Round (Boston won 3-0)

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