Pallister started his career at Middlesbrough in 1984, going on to play 189 times during a 5 year spell at the club. During this time, Pallister enjoyed the rare feat of playing for his country before playing in the top division. He moved to Manchester United in 1989 for a record fee for a defender, playing over 330 times for the club, and winning four Premier League trophies. Pallister returned to Middlesbrough in 1998, before retiring in 2001.