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INDIANAPOLIS — Indiana Pacers forward Aaron Nesmith has agreed to a two-year, $40.4 million extension Monday night, securing his tenure in Indianapolis through the 2028-29 season.  

The deal represents the maximum allowed salary extension the Pacers were able to offer Nesmith under league rules, signaling the franchise’s belief in Nesmith’s value. The contract also includes an added trade kicker. By committing to Nesmith before the extension deadline, the Pacers retain their most essential two-way players and top defenders.  

Nesmith enjoyed a true breakthrough season in 2024-25, achieving career-high efficiency marks across the board. He shot a stellar 51% from the field, 43% from the three-point range, and 91% from the free-throw line. Nesmith averaged 12 points and 4 rebounds per game last NBA season and averaged 12.7 points and 5.7 rebounds per game in the 2025 NBA Playoffs.