Smith will take the roster spot vacated by starter David Huff, who was optioned to the Clippers on Monday. Huff (2-9) has just one win in his past 11 starts.
This will be Smith's second stint with Cleveland this season. He was on the club's opening day roster, but was sent to Columbus on April 30. He went 2-1 with two saves and a 1.96 ERA in 20 appearances for the Clippers.
Smith, who was 0-1 with a 7.71 ERA when he was demoted, will join the Indians for their series opener Tuesday in Philadelphia.