Nolan was sent off in quick succession against Liverpool and Fulham, meaning he missed a number of key games as West Ham struggled at the wrong end of the table, and Allardyce admits the dismissals were 'one of the lowest points of his career' for the midfielder.
However, the former Bolton man has bounced back from that disappointment and has been instrumental in West Ham's climb up the table with five goals in four games and Allardyce never doubted Nolan would come good.
"I know his qualities and I like the fact that he's gone about his job and made sure he repays everybody at the club for what happened," said Allardyce.
"It was his lowest point of his career. It wasn't just the one sending off; it was two in a short period of time, but his contribution since then has been massive and it is not only in the goals, but also the contribution with the first goal which was a top quality pass.
"Everyone talks about him being with Andy (Carroll), but Andy hasn't been here for a while, and Kevin's still feeding off the front men with the balls going in the box, and our quality in the final third is getting so much better now.
"Because it's getting so much better is the reason why we're winning games of football now, because we've always been good at defending."