The kyphoplasty cement encapsulation balloon is a flexible, resilient silicone balloon having a catheter or filling tube disposed inside the balloon. The filling tube has a closed end and a plurality of orifices defined in the tube radially. The tube has an open mouth extending through a hole in the balloon, defining an inflation port. The inflation port is internally threaded, and preferably has a radiopaque marker band extending around the port. The inflation port has a one-way duck or duckbill valve that closes the inflation port when the inflation cannula is detached from the port, thereby encapsulating the bone cement in the balloon and preventing leakage of the cement. The inflation cannula and the kyphoplasty cement encapsulation balloon may be furnished as a kit.