Trainers quickly put a towel over the leg and players from both teams surrounded Oladipo as he lay on the floor. Fans gave him a standing ovation as he was carted off the floor on a stretcher.
Oladipo had tears in his eyes but gave a thumbs-up as he was wheeled to the locker room.
The injury occurred when Oladipo fell awkwardly while trying to defend an outlet pass to Raptors forward Serge Ibaka, who landed on top of Oladipo with 4:05 to go.
Oladipo made his first All-Star Game last season after being acquired in the trade for Paul George. He is the Pacers' top scorer this season at 19.2 points per game.
George, who suffered a broken leg in 2014, tweeted that he was sending prayers to Oladipo.
The Associated Press contributed to this report.