An airbag inflator system and method of manufacture is disclosed which may be stored in a small area, is simple to fabricate, directs exhaust gas from a standardized inflator, sufficiently cools and diffuses the exhaust gas, and catches hot gas generant residue. The system includes an airbag inflator within a sleeve. Solid sections of the sleeve circumscribe the inflator and are positioned to divert exhaust gas leaving an exit port of the inflator. The configuration of the solid sections provides that the inflator need not be rotated during assembly to position exit ports below solid sections. The diverted exhaust gas unrolls the sleeve to form an exhaust passage. The gas passes through the exhaust passage and is dispersed by the permeable section before entering the textile airbag. In this way, a simple, effective diffusion system for curtain airbag inflators is provided.