During the first 3 years of the Compton Gamma Ray Observatory mission, the blazar CTA 26 was observed 10 times by EGRET and not significantly detected. We report an observation in 1995 when CTA 26 flared to a peak γ-ray flux of (4.9 ± 1.5) x 10^-6 cm^-2 s^-1 (E > 100 MeV), the third brightest of all EGRET blazars. Following the γ-ray flare, extensive VLBA and single-dish radio observations were obtained. We find two components of a milliarcsecond jet moving with apparent transverse velocities of 12 ± 1 h^-1 c, and 5 ± 2 h^-1 c (H₀ = 100 h km s^-1 Mpc^-1, q₀ = 0.1). The position angle of VLBI components appears to change with time. The slowest VLBI component's motion is consistent with ejection at the time of the 1995 γ-ray flare. A weak radio flare is also seen in Metsähovi millimeter radio monitoring data, peaking within weeks of the γ-ray flare.