A closed-form analytic solution of two-dimensional scattering and diffraction of plane SH waves by a semicylindrical hill with a semi-cylindrical concentric tunnel inside an elastic half-space is presented using the cylindrical wave functions expansion method. The solution is reduced to solving a set of infinite linear algebraic equations. Fourier expansion theorem with the form of complex exponential function and cosine function is used. Numerical solutions are obtained by truncation of the infinite equations. The accuracy of the presented numerical results is carefully verified.