The Grizzlies led by 18 on three occasions in the third period and 88-72 after three quarters, but the Knicks scratched back into the game throughout the final 12 minutes, getting within 98-94 on a 3-pointer by Tim Hardaway Jr. with 4:08 to play.
A Courtney Lee 3-pointer made it a 102-99 game with 48 seconds left, after which the Knicks forced a missed jumper by Tyreke Evans.
However, New York's Kristaps Porzingis was called for a loose-ball foul going for the rebound with 25 seconds remaining, allowing Memphis to retain the ball with a three-point lead.
The Knicks then appeared to force a turnover with 17 seconds left, but the referees ruled a jump ball and slapped Lee with a technical foul for arguing.
Evans made the free throw for a four-point lead, and he added another pair three seconds later after winning the jump ball from Hardaway.
Evans had a game-high 23 points and JaMychal Green 18 for the Grizzlies, who won a second straight game for the first time since October.
Evans and Green both recorded double-doubles for Memphis, Evans with a game-high 10 assists and Green with a game-high 13 rebounds.
Dillon Brooks and Jarell Martin added 17 points apiece for Memphis, which outscored the Knicks 30-21 on 3-pointers. Green and Brooks made three apiece.
Porzingis had a team-high 21 points and Enes Kanter 20 for the Knicks, who fell to 5-16 on the road.
Porzingis and Kanter shared team-high rebound honors for New York with nine.
Lee and Michael Beasley chipped in with 18 points apiece and Hardaway had 16 for New York, which was outshot 45.1 percent to 42.7 percent by the Grizzlies.
The loss was the Knicks' seventh straight at Memphis dating back to March 2011.
The Knicks made only one 3-pointer in the first half and fell behind by as many as 12 points en route to a 61-53 deficit at the break.
Green had a 3-pointer in a late 7-0 burst that accounted for a majority of the halftime difference.
--Field Level Media
New York | Memphis | |
Kristaps Porzingis 21 | Scoring | Tyreke Evans 23 |
Jarrett Jack 8 | Assists | Tyreke Evans 10 |
Enes Kanter 9 | Rebounds | JaMychal Green 13 |
Enes Kanter 6 | Free Throws Made | Mario Chalmers 4 |
Kristaps Porzingis 3 | Steals | Mario Chalmers 3 |
Kristaps Porzingis 6 | Blocks | Andrew Harrison 1 |
Team | Points | FG% | 3PM-3PA | FTM-FTA | Assists | Rebounds | Blocks | Steals | Turnovers |
New York | 99 | 42.7 | 7-27 | 22-23 | 22 | 45 | 12 | 5 | 14 |
Memphis | 105 | 45.1 | 10-28 | 13-17 | 23 | 44 | 3 | 9 | 12 |