They were side-by-side and Allison beat him at the line, and then was spun out and crashed into the wall hard and slid all the way into turn one.
In The Winston Open, Michael Waltrip and Hut Stricklin finished first and second, respectively, to make the starting grid.
It was also the first time that past champions were eligible, even though they did not win (Richard Petty and Terry Labonte).
Allison won the pole for the all-star event and the accompanying $50,000 bonus from Winston on Friday evening during the unique three-lap, two-tire pit stop qualifying run.
When the green flag flew for the first 30-lap segment, Allison jumped out to the early lead and showed the field his heels for the entire 30 circuits, earning him another $50,000 bonus.
With Kyle Petty pulling away, it appeared nobody would be able to catch him, but on the third lap, Darrell Waltrip was tapped from the rear, sending him dirt-tracking through the tri-oval grass in front of the main grandstand.
Waltrip nearly corrected his Chevrolet Lumina, but stalled momentarily at the end of pit road, prompting the first and only caution of the final segment.
The two touched again as they crossed the start-finish line, sending Allison's Texaco Ford spinning wildly into the frontstraight wall.
The car hit hard on the driver's side before a trail of sparks led to its final resting place in the infield grass.
The helicopter buzzed Victory Lane where Allison's team accepted the trophy and $200,000.00 check on his behalf.
Ken Schrader, three consecutive times a runner-up in The Winston, finished third, while Ricky Rudd and Bill Elliott rounded out the top five.