A method of manufacturing a balloon catheter in which an extruded tubular balloon parison is attached to a component of a catheter shaft prior to blow molding a balloon from the extruded tubular balloon parison. A distal end region of the tubular balloon parison is attached to the outer surface of the elongate catheter shaft component to form a distal bond region between the tubular balloon parison and the catheter shaft component, and then the assembly is positioned in a balloon mold. An annular space between an inner surface of the tubular balloon parison and the outer surface of the elongate tubular member is pressurized to expand the tubular balloon parison in the cavity of the balloon mold to form an inflatable balloon.