Abstract: The present invention is accomplished by providing a dilatation balloon catheter with a flexible tip comprising a catheter body having proximal and distal ends with an outer shaft defining an inflation lumen. The catheter body has a coaxial inner guidewire shaft defining a guidewire lumen. An inflatable balloon is mounted at the distal end of the catheter body, the balloon has an outer diameter, an inner diameter, a distal end and a proximal end. The proximal end of the balloon is in fluid communication with the distal end of the inflation lumen and the distal end of the balloon is sealingly mounted to the guidewire shaft. The guidewire shaft extends distal to the distal end of the balloon, the guidewire shaft has an outer diameter and a step down area. The guidewire shaft Step down area begins just proximal to the distal end of the balloon. The guidewire shaft step down area has an outer diameter which is less than the outer diameter of the guidewire shaft.