After making only six league appearances for the Reds, McAllister caught the eye of Scottish Premier Division side Dunfermline Athletic, who signed him in July 1990.
Although McAllister remained at East End Park for two and a half seasons he made little impact at the club, managing only six Premier Division appearances for Dunfermline.
[2] A popular figure with the club's supporters, McAllister acted as captain for much of his ten years at the Showgrounds and demonstrated his versatility by playing across the defence and even as an emergency keeper, most notably during the 2000 Gold Cup final.
The move proved a success as the club were promoted to the IFA Premiership at the end of his first season in charge, defeating Institute in a play-off.
[8] McAllister's second spell at the club was considerably less successful than his first as Donegal Celtic were relegated following a play-off defeat at the hands of Warrenpoint Town F.C.
However, on 4 August 2013 McAllister once again announced his resignation as Donegal Celtic manager, stating that the club could not match his ambitions, after reports were released suggesting that they would be paying neither wages nor expenses to players in the coming season.