The Knicks battled from behind for nearly the entire fourth quarter before Smith finally got his chance to be the hero. He didn't disappoint.
Smith finished with 13 points and four assists on 6-for-16 shooting.
Charlotte's Kemba Walker had a game-high 25 points and 11 assists to lead the way for Charlotte.
The Knicks are now 13-4 and have won four straight games to take control of first place in the Atlantic Division. New York holds a two-game lead over their cross-town rivals, the Brooklyn Nets.
But though this game was a thrilling one for the Knicks, it did not come without a price. Knicks forward Carmelo Anthony was forced to leave the game with just over two minutes to go after diving into the New York bench after a loose ball. Anthony then went into the locker room with a lacerated left middle finger. In the 38 minutes he was able to play, he scored 23 points.
Tyson Chandler was the big force inside on Wednesday, picking up 18 points and 17 rebounds.
The Knicks see the court again on Thursday night when they travel to Miami to take on the defending champion Heat.