The Pacers locked up a key 3-and-D contributor to their 2025 NBA Finals run, agreeing to a 2-year, $40.4 million contract extension with forward Aaron Nesmith. The deal was made official on Monday afternoon .

The 26-year-old found a home in Indiana after joining the Pacers in 2022. Drafted No. 14 overall by the Celtics in 2020, Nesmith was unable to secure major minutes in two seasons before being traded in the deal that sent Malcolm Brogdon to Boston.

Nesmith quickly established himself as a double-figure scorer, and his 3-point shooting has improved each season with the Pacers, from 36.6% in 2022-23 to a career-best 41.3% in 2024-25.

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