Hemangioma of the bladder is an uncommon, benign vascular tumor. To date, less than 100 cases have been reported in the literature. A case of diffuse capillary hemangioma involving the entire bladder is described herein. The patient had previously received radiotherapy and the condition developed into severe bladder retraction with massive vesicoureteric reflux. The patient underwent cystectomy preserving the prostate and seminal vesicles and an ileal neobladder was created using a segment of the sigmoid colon. A follow-up of more than 4 years evidenced good results. The literature is reviewed highlighting the diagnostic and therapeutic aspects of this condition.