A system and method for dilating a Eustachian tube of a patient is disclosed. The device includes a protective sheath, a flexible endoscope and a balloon dilation catheter. The protective sheath includes an endoscope lumen and a balloon dilation catheter lumen. The balloon of the balloon dilation catheter is a low profile balloon particularly useful for dilating the Eustachian tube, and in particular, the Eustachian tube of a pediatric patient. The method involves advancing the balloon dilation catheter through a nasal passage of the patient to dilate a portion of the Eustachian tube.