Allardyce beat off competition from Jose Mourinho of Chelsea, Brendan Rodgers at Liverpool and Hull boss Steve Bruce for the award.
Concerns were raised over Allardyce's future at the club after a string of losses through the winter, and crashing out of two cup competitions in the space of four days.
However, motivated by holding Chelsea to a 0-0 draw at Stamford Bridge on January 29, the Hammers boss guided the London club to four wins out of four in the Barclays Premier League through February, beating Swansea City, Aston Villa, Norwich City and Southampton.
Allardyce has been awarded the accolade for this spectacular turnaround of results which saw West Ham record four consecutive clean sheets, and praised his players as 'fantastic'.
He said: "It's thanks to the players for their achievements throughout February.
"It's made a very, very entertaining Premier League - one where I think it's entertained the public from the very start and I think it'll entertain them to the very finish."
This is the fifth time he has received the award, most recently in December 2006 when he was manager of Bolton Wanderers.
West Ham skipper Kevin Nolan was delighted for his boss.
"It's a deserved honour for the gaffer," he said.
"It was a fantastic February."
Liverpool's Daniel Sturridge has also been awarded Player of the Month, after scoring five goals in five appearances and making two assists for the Reds in February.
He said: "I've been working hard and the team have helped me to be successful. I've been praying a lot and I've got a faith in God, and I put it down to that really."