I'm bit confused with the following two sentences. Which is the correct usage?
It's an important point that all we need to understand.
or
It's an important point that we all need to understand.
Learn English – “We all” or “all we”
phrase-usageplural-formsword-order
Best Answer
"It's an important point that we all need to understand" is fine and grammatical (your second option). It is synonymous with "it's an important point that all of us need to understand." Both are fine and there's no reason to prefer one to the other.
The first sentence is not grammatical. The word "all," before pronouns, always takes "of [object pronoun]". So "all of us, all of them, all of you." (It's grammatically correct, but semantically strange, to say "all of me, all of her, all of him.")