Andrew Bogut scored 14 points and hauled in 17 boards for the Bucks, who saw their three-game slide become history. Ramon Sessions had 15 points and 10 helpers, while Richard Jefferson ended with 11 points.
Chris Duhon had 20 points and Nate Robinson gave 19 and 10 rebounds for the Knicks, who have dropped three straight. David Lee had 13 points and 12 boards, while Wilson Chandler tallied 13 points in defeat.
The Knicks made a couple of big trades on Friday, including a trade of guard Jamal Crawford to the Golden State Warriors for forward Al Harrington. Later on Friday, the Knicks announced they swapped forward Zach Randolph and guard Mardy Collins to the Clippers for guard Cuttino Mobley and forward Tim Thomas.
Milwaukee assumed a 28-19 lead after the first quarter, but the Knicks closed to 50-47 at the half.
A Jefferson three-pointer and two baskets from Charlie Bell gave the Bucks a 57-47 lead with 8:46 left in the third frame.
The Knicks couldn't close within six points the rest of the frame and Milwaukee held a 72-60 lead heading into the fourth stanza.
Nine straight Bucks points to open the fourth gave Milwaukee an 81-60 cushion. Villanueva's tip-in sparked the run and he ended with six of the points on the burst, as the Bucks never looked back from there.