A device for an illuminated balloon includes a light emitting diode. A holder is connected to the light emitting diode, the holder having a first side, an opposite second side, and a hole which receives the light emitting diode, the hole extending from the first side to the second side. The holder is connectable to the inside surface of the balloon, so that the light emitting diode points out from the balloon. When so connected to the balloon, the longitudinal axis of the light emitting diode is oriented substantially perpendicular to the surface of the balloon. In an embodiment the holder is disc shaped, is fabricated from foam, and is connected to the inside surface of the balloon by an adhesive.