A balloon catheter with delivery probe and method of use for delivering a therapeutic agent and/or diagnostic agent to tissue is provided. The catheter has a balloon, a first lumen and a probe movably disposed in the first lumen of said catheter. The probe has a lumen for delivering a diagnostic and/or therapeutic agent to tissue. The catheter has a third lumen through which fluid is supplied to the balloon. The catheter with delivery probe may be inserted into a bodily cavity such that the distal end of the probe extends out of an opening in the catheter. When the balloon is inflated the probe is captured between an outer wall of the balloon and the tissue so that therapeutic and/or diagnostic agent may be delivered to the tissue through the probe lumen via the distal end of the probe.