Pallister had the rare achievement of representing the English national side before appearing in the top flight; in 1988 when playing in the Second Division for Middlesbrough. Later that year he helped 'Boro win their second successive promotion and reach the First Division, just two years after they almost went out of business, but was unable to keep them there and they were relegated on the final day of the 1988–89 season. As one of the highest regarded defenders in England, his days at Ayresome Park were looking numbered as soon as Boro were relegated but he did begin the 1989–90 season still at the club in the Second Division before his move to United was completed.