A rigorous solution is presented for the problem of diffraction of plane harmonic sound waves by a cavity formed by a terminated rigid cylindrical waveguide of finite length whose interior surface is lined by an acoustically absorbent material. The solution is obtained by a modification of the Wiener-Hopf technique and involve an infinite series of unknowns, which are determined from an infinite system of linear algebraic equations. Numerical solution of this system is obtained for various values of the parameters of the problem and their effects on the diffraction phenomenon are shown graphically.