Portland hit 10 of its first 13 shots and built an 18-point lead before the Pacers closed within three on a basket by Jalen Rose at the end of the third quarter.
A 3-pointer by Reggie Miller and a basket by Austin Croshere had Indiana within 69-65 in the fourth period. But Smith scored two straight baskets, Greg Anthony hit one of two free throws and Smith and Rasheed Wallace scored again to break the game open.
Wallace also had 22 points.
Croshere scored a season-high 23 points and pulled down 10 rebounds, and Miller added 18 points for the Pacers. Dale Davis, who came to Portland in a trade with Indiana in the off-season, had 16 points and 10 rebounds.
The Pacers came in with the NBA's top defense in field goal percentage, but the Blazers jumped ahead 8-0 and never let up. A 3-point basket by Damon Stoudamire capped another run of seven straight points and gave Portland a 21-9 lead with under five minutes left ithe first quarter.
The Pacers closed within eight at the end of the period. Smith scored three times as the Blazers took their biggest lead at 43-25 midway through the second quarter.
Rose did not take a shot in the first quarter and had only two points at halftime, when Portland led 47-33. Rose finished with eight points on 3-of-16 shooting.
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