Smith returned to the WWF at SummerSlam in 1994, where he immediately became involved in an ongoing family feud between Bret Hart and his brother, Owen Hart.
Smith then teamed up with Bret against Owen and Jim Neidhart in a series of tag team matches, most notably in a victory on Monday Night Raw.

Smith appeared at Survivor Series in a 10-man elimination match.
His partners were Intercontinental Champion Razor Ramon, 1-2-3 Kid, and The Headshrinkers.
They faced Tag Team Champions Shawn Michaels and Diesel, Owen Hart, Jeff Jarrett, and Jim Neidhart.
Smith was eventually counted out.

Smith again played a key part in the main event featuring his brothers-in-law Bret & Owen Hart, in which he supported Bret against Owen's benefactor; Bob Backlund.
Smith would be knocked unconscious by Owen, allowing Owen to take advantage of his brother's situation.
Owen manipulated Bret's mother to surrender to Backlund on Bret's behalf, thus costing Bret to lose the match and the world title.

2 days later Smith would win a title match against Backlund by countout, just 1 day before Backlund would lose the title to Kevin Nash.

After entering the Royal Rumble as the second entrant in 1995, Smith and Shawn Michaels were the final two remaining participants at the end.
Smith tossed Michaels over the ropes and celebrated on the second turnbuckle.
However, only one of Michaels feet hit the floor and he was able to reenter the ring and eliminate Smith from behind.
Soon after, Smith began teaming with Lex Luger as the Allied Powers.
The team wasn't much of a success and only wrestled on two pay-per-views as a tag team.
The first came at WrestleMania XI where they defeated The Blu Brothers.
The second came at In Your House 2 where they failed to win the Tag Team Championship from Owen Hart and Yokozuna.
Afterward the team briefly began feuding with Men on a Mission.
On an August episode of Monday Night Raw, the Allied Powers were supposed to face Men on a Mission but Luger (kayfabe) no-showed the match; Smith found a replacement in the WWF Champion Diesel.
During the match Smith unexpectedly attacked Diesel and turned heel for the first time in his WWF career, helping Men on a Mission beat up Diesel and aligning himself with Jim Cornette's stable with Owen Hart and Yokozuna, who had been his adversaries just a month earlier, thus disbanding the Allied Powers.
Smith returned to the WWF at SummerSlam in 1994, where he immediately became involved in an ongoing family feud between Bret Hart and his brother, Owen Hart. Smith then teamed up with Bret against Owen and Jim Neidhart in a series of tag team matches, most notably in a victory on Monday Night Raw.
Smith appeared at Survivor Series in a 10-man elimination match. His partners were Intercontinental Champion Razor Ramon, 1-2-3 Kid, and The Headshrinkers. They faced Tag Team Champions Shawn Michaels and Diesel, Owen Hart, Jeff Jarrett, and Jim Neidhart. Smith was eventually counted out.
Smith again played a key part in the main event featuring his brothers-in-law Bret & Owen Hart, in which he supported Bret against Owen's benefactor; Bob Backlund. Smith would be knocked unconscious by Owen, allowing Owen to take advantage of his brother's situation. Owen manipulated Bret's mother to surrender to Backlund on Bret's behalf, thus costing Bret to lose the match and the world title.
2 days later Smith would win a title match against Backlund by countout, just 1 day before Backlund would lose the title to Kevin Nash.
After entering the Royal Rumble as the second entrant in 1995, Smith and Shawn Michaels were the final two remaining participants at the end. Smith tossed Michaels over the ropes and celebrated on the second turnbuckle. However, only one of Michaels feet hit the floor and he was able to reenter the ring and eliminate Smith from behind. Soon after, Smith began teaming with Lex Luger as the Allied Powers. The team wasn't much of a success and only wrestled on two pay-per-views as a tag team. The first came at WrestleMania XI where they defeated The Blu Brothers. The second came at In Your House 2 where they failed to win the Tag Team Championship from Owen Hart and Yokozuna. Afterward the team briefly began feuding with Men on a Mission. On an August episode of Monday Night Raw, the Allied Powers were supposed to face Men on a Mission but Luger (kayfabe) no-showed the match; Smith found a replacement in the WWF Champion Diesel. During the match Smith unexpectedly attacked Diesel and turned heel for the first time in his WWF career, helping Men on a Mission beat up Diesel and aligning himself with Jim Cornette's stable with Owen Hart and Yokozuna, who had been his adversaries just a month earlier, thus disbanding the Allied Powers.
Davey Boy Smith