Indiana signed the free agent Thursday but did not provide details of the contract. Price spent his first three NBA seasons with the Pacers and the addition is expected to help a team decimated by injuries.
The Pacers (1-4) lost two-time All-Star Paul George with a broken right leg during the summer.
They also are playing without power forward David West (sprained right ankle), guard George Hill (bruised left knee), backup point guard C.J. Watson (bruised right foot) and guard Rodney Stuckey (strained tendon in left foot).
The NBA gave Indiana a hardship exception to add Price, who was waived by Cleveland on Saturday.