An illuminated inflatable decoration comprises a base unit including a housing. The inflatable decoration includes a rechargeable battery located in the housing. In addition, a fan and a light source are arranged to draw power from the rechargeable battery. An inflatable element is removably connected to the base unit and configured to be expanded into a semi-rigid shape when filled with pressurized air from the fan. The inflatable decoration includes a controller configured to receive commands from a remote-control unit and control the operation of the fan and the light source. With this arrangement, customers will be able to incorporate illuminated inflatable elements into their event design décor scheme without the need for a power feed.