The tractor manufacturing company was founded in 1847 by E. P. Allis of New York. Originally named as ''Edward P. Allis & Company'', the organization manufactured small burr millstones after the acquisition of ''The Reliance Works'' shop. The list of products manufactured by the small shop includes items such as French burr millstones, portable mills, water wheels, shafting, hoisting screws etc. The company diversified in 1869 to manufacturing the steam powered engines and produced the first Allis steam engine. The company started the production of steam pumps and was responsible for manufacturing the largest centrifugal pump in America in 1884. It also manufactured the first triple expansion steam pump in the year 1886. The company gained the title “''Allis Chalmers'' after the merger of the Edward P. Allis Co., Fraser and Chalmers Company and Gates Iron Works, in 1901.

The company built their first tractor model in the year1914 following the purchase of an enormous area of land in West Allis, Wisconsin, contingent to the merger. The success of the first tractor led to the design and development of the first series of Crawler tractors in 1928. The company went on an acquisition spree in the following years by purchasing many prominent companies such as the LaCrosse Plow Company and Advance-Rumely. The acquired companies specialized in the manufacture of exhaustive range of tillage implements, threshers, and combine.

The company undertook catering to needs of the small and medium sized farmer, leading to the development of the most popular series of tractors. The first WC tractor was built in 1933 followed by the Model B series. Other revolutionary tractors from the company are the 1940 Model C tractor, the 1950 Allis Chalmers CA, 1948 WD tractor, and the 1953 Allis Chalmers WD45. The company suffered financial set-backs and eventually was acquired by the Germany based K-H-Deutz AG in 1985.