An apparatus includes a body and a shaft assembly extending distally from the body. The shaft assembly includes a malleable distal portion and an enlarged tip positioned at a distal end of the malleable distal portion. The shaft assembly further includes a position sensor positioned within the enlarged tip. The position sensor is configured to generate a signal indicating a position of the enlarged tip in three-dimensional space. The shaft assembly further includes an illuminating element positioned within the enlarged tip. The illuminating element is configured to emit light. The shaft assembly further includes an inflatable balloon positioned proximal to the enlarged tip. The inflatable balloon is configured to dilate a passageway in an ear, nose, or throat of a patient.