Lowe, who has 166 career wins, was acquired Monday for left-hander Chris Jones.
The 38-year-old Lowe has pitched in both leagues, as a starter and closer. One of just three pitchers in history with more than 160 wins and 80 saves, Lowe went just 9-17 last season, his third with Atlanta.
Lowe will join an Indians staff with power pitchers Ubaldo Jimenez, Justin Masterson and Fausto Carmona. As part of the deal, the Indians will only have to pay Lowe $5 million of the $15 million he's scheduled to make in 2012.
Jones, 23, went 7-1 with 3.36 ERA in 43 games at Single-A Kinston last season.