A handheld balloon launcher includes a housing with an axially offset chamber formed therein. A vertically registered intake port defines a linear passageway in which filled water balloons are stacked. A launching plate is selectively adaptable along a longitudinal length of the chamber. A trigger mechanism activates the launching plate between a compressed and an extended position. A mechanism returns the launching plate to the compressed position while simultaneously depositing one of the water balloons in front of the launching plate. The returning mechanism includes a spring member with a diameter equal to a diameter of the chamber and anchored to a proximal end thereof, and extendable along the longitudinal length of the chamber. The launching plate maintains a static relationship with the returning mechanism, and the returning mechanism is independently operable from the triggering mechanism.