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My environment texture is displaying as a fully spherical texture in cycles render. Here is the original image enter image description hereand the image after applying to the environment texture. I don't want the bottom of the image to be like that. enter image description here How do I fix this?

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Make sure the aspect ratio of your environment texture is 2:1.
It seems to me that this is the reason for the massive distortion of your background.

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The issue is you are using an image that does not cover 360 degrees horizontally and vertically. In other words your image is missing information of the top an bottom (it is missing Zenith and Nadir) and cannot be used with equirectangular projection.

enter image description here

My suggestion is to replace such picture with a proper HDR image that uses a known projection. Then you can set the environment texture in the world and select the appropriate coordinates. (For more info on projections read https://wiki.panotools.org/Panorama_formats)

If you absolutely must use the image on your question you need set the background to use an Image Texture (not an environment texture), set the 2D projection to Tube and use a Vector>Mapping node to control the placement of the image.

enter image description here

Note however that the image will only work if you are looking at it perpendicularly. Trying to see top and bottom will only reveal the limitations of the chosen image.

enter image description here

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  • $\begingroup$ Thanks, this helped. I have found some true 360 photos and I am using those instead. $\endgroup$
    – user53103
    Commented May 3, 2018 at 3:20

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