Emerton took time to rediscover his form during the 2009/10 campaign after enduring a nine-month lay-off due to a knee injury.
He has recently been linked with a move to Galatasaray, where he would join fellow Australians, Harry Kewell and Lucas Neill, in Turkey.
But Allardyce does not want to lose the 31-year-old and is confident Emerton is now in a position to make a significant impact at Ewood Park.
"It's been frustrating for Brett, but I think this season is going to be the one where he will show his full potential again," said Allardyce.
"I do think the trauma of an injury that big at his age shocked him.
"But it hasn't from a physical point of view as he's never been so fit. Hopefully, those injuries are put to one side now."
Emerton has also pledged his commitment to Rovers and insists he has no intention of quitting the Premier League club.
He said: "I'm really sick of speaking about it. It was a rumour started in the media and it just snowballed.
"I have two years left on my contract and I intend to finish them."