Pally was born in New York City, to Doctor Steven Pally, an osteopathic internist who owns his own medical office, and Caryn Pally, who manages the practice in Florham Park, New Jersey. He grew up in New York, Chicago, and New Jersey, and has two sisters, Erica and Risa.
In 2004, Pally graduated from The New School University in New York City.
He was raised Jewish. He has performed improv and sketch comedy at the Upright Citizens Brigade Theatre (UCBT) in New York since 2002 and continues to perform in shows such as "Death by Roo Roo" and "ASSSSCAT 3000" at the theater"s Los Angeles division. Pally is also part of the improv group "Hot Sauce" with Gil Ozeri and Ben Schwartz.
The group continues to perform their long-form improv show at UCBT occasionally.
Pally has appeared in such films as Iron Manitoba 3, Taking Woodstock, Solitary Manitoba, Assassination of a High School President, The To Do List and A.C.O.D. and Slow Learners. He has made guest appearances on Last Week Tonight with John Oliver, Californication and The Colbert Report.
He has written and appeared on the Adult Swim series NTSF:South Dakota:SUV::. Pally and frequent collaborator Gil Ozeri are currently writing a script being produced by Will Ferrell & Adam McKay"s company Gary Sanchez Productions.
From April 2011 to May 2013, Pally starred as Max Blum, one of the lead characters on the American Broadcasting Company ensemble comedy series Happy Endings, alongside Eliza Coupe, Elisha Cuthbert, Zachary Knighton, Damon Wayans, Junior., and Casey Wilson.
In 2013, Pally was nominated for "Best Supporting Actor in a Comedy Series" at the Critics" Choice Awards for his work on season three of Happy Endings. Following the cancellation of Happy Endings, Pally joined the cast of The Mindy Project as a series regular for the second and third season, playing the role of Doctor Peter Prentice. He left the show mid-way through the third season, making his final appearances as a series regular in 2015.
Pally filmed a lead role opposite T.J. Miller and Thomas Middleditch in the comedy Search Party.
This film serves as the directorial debut of screenwriter Scot Armstrong. He also starred in the indie films Slow Learners and Night Owls, both released in 2015.
He is a member of the sketch comedy group "Chubby Skinny Kids" with comedians Dan Gregor and Doug Mand.
