Allen, the World No 11 from Antrim, made breaks of 64 and 56 to lead 2-0. He led 57-0 in the third frame and clinched victory when Ebdon missed a black on 20 and conceded.
The 23 year-old progresses to the winners’ group next month where the eventual champion will qualify for the prestigious Premier League next season.
“I lost to Judd Trump in the group three final and was gutted because it meant I had to start over again so I’m delighted to win, particularly by such a margin against as good a player as Peter,” Allen said.
“I didn’t play particularly well in the group but managed to do enough and I’m happy to get over the line.
“The Premier League is such a big event with huge crowds and I’d love to be in it. I relish the big stage and feel it would be a good chance to show people my personality and what I can do.”
Ebdon began his semi-final against Mark Williams with a 144 total clearance and went on to win 3-1 while Allen defeated his Northern Irish compatriot Joe Swail 3-0.
Barry Hawkins lost his first five matches and was relegated but his 3-2 victory over Jamie Cope meant Williams finished in fourth spot, with Cope pushed down to fifth. Stuart Bingham finished sixth and was also relegated.
Allen joins a winners’ group already brimming with quality. Stephen Maguire, John Higgins, Judd Trump, Marco Fu and Neil Robertson have also made it through with one further place to be decided in group seven.
Reigning UK champion Ding Junhui, six times World Champion Steve Davis and Nottingham’s Michael Holt will join Ebdon, Williams, Swail and Jamie Cope on March 22-23.
For more information about the competition, visit www.premierleaguesnooker.com/championship
Mark Allen 3-0 Joe Swail
67-29 (Allen 37), 67-54 (Swail 39), 78-28 (Allen 37)
Peter Ebdon 3-1 Mark Williams
144-0 (Ebdon 144), 97-7 (Ebdon 65), 4-66 (Williams 58), 77-60 (Ebdon 55, Williams 55)
Mark Allen 3-0 Peter Ebdon
69-1 (Allen 64), 72-0 (Allen 56), 57-20 (Allen 32)