The Phoenix Suns are finalizing a trade for forward Torrey Craig with the Indiana Pacers in exchange for second-year forward Jalen Smith and a future second-round pick, sources told ESPN's Adrian Wojnarowski on Thursday.
Craig would return to Phoenix after spending the second half of the 2020-21 season and the subsequent playoffs as a reserve with the Suns.
He signed with the Pacers as a free agent during the offseason and has averaged 6.5 points and 3.8 rebounds in 51 games, moving into Indiana's starting lineup for the past month.
To reunite with Craig, the Suns are set to trade away Smith, who was selected No. 10 overall in the 2020 NBA draft. Smith has appeared in 56 games across two seasons in Phoenix, averaging 4.1 points on 45.5% shooting and 3.1 rebounds.
Holiday averaged 6.1 points for the Wizards and gives Phoenix more depth in the backcourt.
The Pacers have been active this week in revamping their team ahead of the trade deadline. In addition to Smith, Indiana acquired Tyrese Haliburton, guard Buddy Hield and center Tristan Thompson in a six-player trade with the Sacramento Kings on Tuesday.
ESPN's Ohm Youngmisuk contributed to this report.