The Pacers were happy to take advantage, ending a 10-game losing streak in Cleveland.
Granger's 3-pointer with 1:22 left gave the Pacers a 108-106 lead. They never trailed again, but didn't secure the victory until Anthony Parker's turnaround 3-pointer at the buzzer fell well short of the rim.
Brandon Rush and Earl Watson each had 16 points, Troy Murphy had 14 and Roy Hibbert added 12 as the Pacers put all five starters in double figures.
J.J. Hickson tied his career high with 21 points, while Sebastian Telfair set a season high with 21 in just his second game with the Cavaliers.
The loss means little to Cleveland, other than serving as the Cavaliers' first losing streak since they dropped three straight from Feb. 18-21.
James missed his second straight game and Brown said he is contemplating sitting him for the rest of the regular season. Cleveland hosts Orlando on Sunday in what could be a prelude to an Eastern Conference finals rematch before closing the regular season Wednesday at Atlanta.
Jamison was injured Thursday when Chicago's Luol Deng stepped on his right foot during a drive to the basket. Jamison grimaced in pain when it happened, but by Friday was walking without a limp and taking part in pregame shootaround. He said he expects to play against the Magic on Sunday.
Gibson, who hasn't played since March 26, is nursing a mid-foot contusion and O'Neal continues to recover from thumb surgery.
With so many regulars missing, the Cavaliers relied heavily on bench players. Jamario Moon started and finished with 15 points and Zydrunas Ilgauskas had 14 off the bench.
