Indiana pulled within three games of Atlanta for the final playoff spot in the Eastern Conference with the victory. The Hawks lost 109-104 to the Philadelphia 76ers.
Troy Murphy scored 17 points and Danny Granger added 13 for Indiana, which has missed the playoffs the last two seasons. Jermaine O'Neal had 11 points and six turnovers in his third game back after missing 33 with a sore left knee.
The Pacers have six games remaining, including matchups with the Bucks on Sunday and the Hawks on Tuesday night.
Michael Redd scored 28 points for Milwaukee, and Andrew Bogut added 21 points and 16 rebounds.
Bobby Simmons made two free throws to cut Indiana's lead to 77-75 but Dunleavy hit a 3-pointer from the left corner with 9:10 to go.
Dunleavy's three-point play gave Indiana a 13-point lead late in the second quarter, and the Pacers led 53-46 at the half.
Notes:@ Bucks rookie F Yi Jianlian will miss the rest of the season with a sprained medial collateral ligament in his left knee. He hurt his knee early in the first quarter of Milwaukee's victory over the Wizards on Wednesday.
