Founded in 1929 as a stop for the Panhandle and Santa Fe Railway, the town was named for the general manager of the railroad, R. H. Allison.

The town reached its height in population in 1941, just before the country entered World War II, at 200.

For years, the Allison Independent School District served the community's students.

[3] Allison is in the eastern Texas Panhandle, which is in the western portions of Tornado Alley.

[4][circular reference][5][6] The Allison tornado was documented by science teams associated with the first of two VORTEX projects.