Granger, the NBA's fifth-leading scorer at 25.5 points per game, missed practice on Saturday to rest the knee.
Before the Pacers played the Washington Wizards on Sunday night, Granger said he's ruled out missing the Feb. 15 All-Star Game in Phoenix.
"No chance. I'll hobble through that game if I have to," Granger said. "No way am I bagging that one."
Pacers coach Jim O'Brien agrees with Granger's decision.
"I would second that. You don't make the All-Star team every year," O'Brien said. "His knee is not an issue that him going out and playing a quarter and-a-half is going to go out and impact his knee."