A manhole liner and a method of using the same are provided. The manhole liner is sized substantially equally to the largest diameter of the manhole, so that the liner does not have to stretch to be pressed against the manhole wall. Additionally, the liner is impregnated with a resinous material capable of curing and hardening. A bladder, preferably stretchable circumferentially and having a diameter less than the smallest diameter of the manhole, is inserted into the liner. The bladder is expanded to press the liner against the wall of the manhole to dispense resinous material from the liner, while the liner is able to fold over itself in areas having a diameter less than the original diameter of the liner. Because the bladder stretches to produce a smooth outside surface, the resinous material will migrate to areas in the folds and will cure with a smooth interior surface.