In 1931, he was allowed back to Fes, and he again picked up his political agitations in the city, and started campaigning and giving nationalistic speeches which gathered success and emotions amongst the masses who admired his eloquence.

This prompted the French to exile him again in 1933, this time to Geneva where he met the Lebanese political leader Shakib Arslan, and would assist him in his historical works on the Maghreb region.

Allal came back to Morocco in 1934, and founded the kutlat al-'amal al-watani كتلة العمل الوطني, Comité d'Action Marocaine (CAM) and the first Moroccan-led workers' union in 1936, and in December of that year officially petitioned the French Colonial Residence in Rabat demanding a number of reforms.

This led the French authorities to decide to disband and persecute the members of his political organization, and in 1937, exiled him to the small town of Port-Gentil in Gabon where he would remain for the next nine years until 1946, receiving very little information about the affairs of the outside world during that period.

He broke with the party in the mid-1950s, siding with armed revolutionaries and urban guerrillas who waged a violent campaign against French rule, whereas most of the nationalist mainstream preferred a diplomatic solution.