Guard Lance Stephenson had 16 points, six rebounds and six assists and forward Luis Scola added 13 points and six rebounds for the Pacers, who took out their frustration from Wednesday night's loss at Miami by outscoring the Rockets 31-20 in the third quarter to take control of the game.
It was Indiana's largest victory margin of the season.
Pacers forward Danny Granger played for the first time this season after missing the first 25 games with a strained left calf. He finished with five points, two rebounds and two assists in 22 minutes.
The Pacers had failed to score 100 points in their previous five games, but they shot 53 percent from the field and reached a season-high point total to remain at the top of the Eastern Conference standings.
Houston guard James Harden, who entered the game as the league's No. 6 scorer, was held to 12 points on 3-for-14 shooting from the field. He also had five turnovers in one of his worst performances of the season.
Indiana led by 11 at halftime and began extending its lead in the third quarter. George hit a 3-pointer to boost the Pacers' lead to 67-51 with about eight minutes left in the third quarter. Stephenson followed with a 3-pointer to push the margin to 19. A reverse, behind-the-head jam by George gave the Pacers an 81-55 lead, and Indiana coasted from there.
Indiana led 87-65 at the end of the third quarter after shooting 59 percent from the field in the third.
Granger hit a 3-pointer with 9:48 left in the game, drawing chants of "Danny! Danny!" from the sellout crowd. His triple put Indiana ahead 92-67. The Pacers reached 100 points on a putback by reserve center Ian Mahinmi.
The Pacers led by 12 in the second quarter, but the Rockets cut their deficit to three before Indiana bounced back and went ahead 56-45 at the break.
The Pacers shot 46 percent from the field in the first half.
George scored 12 points but also was just 2 of 8 from the field before the break.
NOTES: Rockets G Jeremy Lin missed his third consecutive game with back spasms. ... Rockets C Omer Asik missed the game with a right thigh contusion. ... Pacers F Danny Granger entered the game with 4:05 left in the first quarter. His first significant contribution was a stuff of Rockets C Dwight Howard from behind. His first points came at the free-throw line with 9:54 left in the 2nd quarter ... Indiana started the season 11-0 at home before losing to Detroit on Monday night. That left Oklahoma City as the league's only unbeaten home team.