Percutaneous coronary intervention has revolutionized coronary revascularization therapy. It is increasingly becoming an attractive alternative to medical therapy and surgical revascularization in the treatment of coronary artery disease. Restenosis is a major challenge, and has been described as the Achilles heel of the procedure. It is a serious occurrence that can lead not only to recurrent angina and repeat revascularization, but also to acute coronary syndromes. Newer devices and strategies are being continuously sought to try and overcome these hurdles. Drug-eluting balloon technology is one such device that can potentially provide the solutions to these problems. This review focuses on the limitations associated with the use of drug-eluting stents in treating in-stent restenosis, and the concept and the available evidence for the use of drug-eluting balloons, particularly the paclitaxel-eluting balloons, in coronary and peripheral revascularization.