Price was with Cleveland during training camp and the exhibition season before being waived by the Cavs on Nov. 1. The six-year veteran appeared in 10 games for the Pacers, averaging 10.5 points in 19 minutes.
To make room for Price, the Cavs waived guard Will Cherry. He played in eight games for Cleveland.
The Cavs extended their winning streak to three games on Saturday night with a 109-97 win over Indiana. Cherry scored two points in 13 minutes.
Cleveland hosts Milwaukee on Tuesday before going on a three-game road trip.