Terry scored 16 of his 29 points in the fourth quarter and Kidd hit a pair of key 3-pointers to help the Mavericks rally from a 13-point second-half deficit for a 109-106 victory over the Pacers on Tuesday night.
Dallas stretched its winning streak to five games as Terry and Kidd combined for all of its points in a decisive 18-8 spurt.
"Kidd and Terry just made play after play," Mavericks coach Rick Carlisle said. "Our veterans willed us to a win. You've got to give credit to them."
Nowitzki added 24 points and 12 rebounds and Antoine Wright scored a career-high 24 for the Mavericks, who played without Howard for a third straight game because of a left ankle injury. There is no timetable for his return.
Kidd finished with 11 points and 13 assists as Dallas won its second consecutive home game after dropping the first four. The Mavericks reached .500 (7-7) for the first time since splitting their first four games.
"We kept fighting," Kidd said. "We relied on our defense and got some stops."
Danny Granger's 22 points and Troy Murphy's 21 points and 14 rebounds led the Pacers. Brandon Rush added 18 points off the bench and ex-Maverick Marquis Daniels contributed 14 points and 11 rebounds for Indiana, which has lost three in a row and five of six.
Indiana held a 95-88 lead with 5:05 left, but Terry scored Dallas' next six points to narrow the gap to 97-94.
After Rush's basket, Kidd made a 3-pointer, Terry hit a 17-footer to tie the score at 99 and Kidd drained another 3 with 1:22 left to give the Mavericks a 102-99 advantage.
Indiana was unable to get closer than 106-103 the rest of the way.
Dallas had been 2-for-16 from the 3-point line before connecting on its final three.
"We were due," Terry said with a laugh.
Murphy scored his team's first eight points of the third quarter, including a pair of 3s as Indiana stretched its lead to 64-51.
Dallas cut the deficit to 83-77 heading into the fourth quarter, then opened the period with an 8-2 spurt to tie it at 85.
The Pacers went on a 10-3 run capped by Rush's 15-footer with 5:06 left to open a seven-point advantage, but Terry and Kidd took control. They had to, because Nowitzki was held to two points in the final quarter.
"We had to stay positive even though we were down," Terry said. "We were at home and had to ride the energy of our crowd. We stood our ground and made the plays we needed down the stretch."
Indiana built a 56-49 halftime edge, but once again the Pacers failed to finish off an opponent.
They've led at halftime in 12 of 13 games, but have only five victories.
"We just can't seem to close teams out," Granger said.
Indiana had no defensive answers for Terry and Kidd down the stretch as Terry went 6-for-8 from the field in the fourth quarter while Kidd was hitting two of three shots, both 3-pointers.
"Terry's an awful good player," Pacers coach Jim O'Brien said, "and Kidd has been a clutch player his whole career."
Wright's previous career high was 21 points. ... Indiana had 10 offensive rebounds in the first quarter leading to 14 second-chance points. ... Dallas missed its first 10 3-pointers before Kidd hit from long range early in the third quarter. ... The Mavericks have beaten the Pacers in seven of the last nine meetings.