Pally was born in New York City, to Dr. Steven Pally, an osteopathic internist who owns his own medical office, and Caryn Pally, who managed the practice in Florham Park, New Jersey. In 2004, Pally graduated from The New School University in New York City. 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. He has appeared in such films as Iron Man 3, Taking Woodstock, Solitary Man, Assassination of a High School President, The To-Do List, 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:SD:SUV: His 2020 releases include Sonic The Hedgehog.