An introducer sheath system (10) including an outer layer (54), an inner layer (52), and a dilator (14) is disclosed. The outer layer is circumferentially extending between a first longitudinal edge (56) and a second longitudinal edge (58). An expandable gap (60) is defined between the first and second longitudinal edges. The inner layer is disposed within the outer layer. The inner layer is configured to be continuously circumferentially expandable. The inner layer includes a non-extended state having a circumferential portion extending circumferentially inside the outer layer and a fold portion (64) extending into an interior cavity of the inner layer. The inner layer includes an extended state wherein the fold portion extends at least partially circumferentially between the first and second longitudinal edges. The dilator is extendable longitudinally within the inner layer. The dilator includes a recess (28) configured to accommodate the fold portion of the inner layer.