McAllister later had spells at Premier League sides Coventry City, where he was credited with his role in helping the club avoid relegation repeatedly, and Liverpool, where he won a cup treble in 2000–01 at the age of 36.

He joined Steven Gerrard in leaving Rangers making a return to Aston Villa as Assistant Manager again.

McAllister began his playing career at his local side Motherwell; he stated he supported the club as a child, but also had an affection for Manchester United as his family were acquainted with that of Matt Busby.

[11] Although Mauchlen's greater experience cast McAllister as the 'make-weight' in the deal, he soon rose to prominence as an attacking force in Leicester midfield, impressing manager and fans alike with his accurate passing to feet, and confident range of skills on the ball.

[10] During Leicester's ultimately unsuccessful campaign to stave off relegation to Second Division that season under Milne's successor Bryan Hamilton, McAllister found himself employed in a variety of midfield and forward roles, which affected his form.

Over the following three seasons his reputation quickly grew into being one of the best players in the Second Division, boosted by a respectable goal tally from midfield that included an uncommon number of well-executed strikes from unfavourable positions.

He turned down a heavily mooted £1.15 million move to Nottingham Forest to see out his contract with Leicester after Brian Clough apparently failed to impress him during an interview.

In McAllister's first season at Elland Road, Leeds finished fourth in the table and reached the League Cup semi-finals.

He formed a midfield quartet that season with fellow Scottish international Gordon Strachan and relative youngsters David Batty and Gary Speed.

[10] In Strachan's first full season as manager in 1997–98, McAllister played alongside George Boateng in midfield behind Darren Huckerby and Dion Dublin in attack finishing 11th and reaching the FA Cup quarter-finals in 1998.

The line-up included the likes of Robbie Keane, Mustapha Hadji, Carlton Palmer, Mo Konjić and Youssef Chippo.

[18][10] Though serving for a relatively short time at Anfield, he played an integral role in the team that won a treble of cups in the 2000–01 season.

[13] He scored a penalty winner against Barcelona in the UEFA Cup semi-final[19] and a 44-yard free-kick that won the Merseyside derby against local rivals Everton in the fourth minute of stoppage time.

After replacing Steven Gerrard as a 78th minute substitute, McAllister scored the team's opening penalty kick in a 5–4 shootout win over Birmingham City.

[32] On 31 March 1999, McAllister returned to the Scotland team, captaining the side in a UEFA Euro 2000 qualification game against the Czech Republic.

[33] McAllister left Liverpool in May 2002 to take up the role of player-manager at Coventry City, replacing his former teammate Roland Nilsson in the job.

After almost four years out of the game, McAllister was appointed manager of another of his former clubs as a player, Leeds United, on 29 January 2008 with an initial contract until the end of the season.

[36] Leeds chairman Ken Bates rewarded McAllister for his hard work and the team's good form – just two defeats in 12 games – by offering him a new 12-month rolling contract on 3 April 2008.

[37] Bates cited McAllister's general improvement of team performances and his planning for the club's future as reasons for offering him the new contract.

[10] During his second season as manager, McAllister was sacked on 21 December 2008 after a poor string of results;[39] these included an FA Cup defeat to part-time club Histon and culminated with a 3–1 loss to MK Dons.

[42] He made a return to the field to take part in Jamie Carragher's testimonial match in September of that year, appearing for Liverpool in a 4-1 win over Everton.

[44][45] After Houllier was rushed to hospital in April 2011, McAllister was made caretaker manager for a Premier League game against Stoke City, which ended in a 1–1 draw.

With Houllier having to step down to due ill health, it was announced on 17 June 2011 that after the appointment of Alex McLeish as manager that McAllister would not return to the club as part of the new coaching team.