What happened: Free agent guard Marcus Smart has agreed to a two-year, $13 million contract with the Houston Rockets that includes a player option for the second season. Smart finalized the decision Wednesday morning, with agents Jason Glushon and Josh Ketroser informing Rockets officials.

Why it matters: The move gives Houston a proven perimeter defender and veteran presence as it builds toward the 2026-27 season. It also closes the book on Marcus Smart's brief tenure tied to a $5.4 million option he declined before reaching unrestricted free agency.

What to watch: Watch how the Rockets slot Smart into the backcourt rotation and whether his defensive role expands heading into 2026-27.