With the popularity of Chinese culture, traditional Chinese artworks become more valued than before. Though many precious artworks have been luckily preserved, some damages on them cannot be easily fixed physically. To effectively document those valuable artworks, scholars and collectors have been using scientific methods to conserve them digitally. This paper proposed a two-layer digital image inpainting technology that offers an automatic restoration and completion for damaged Chinese paintings. This algorithm is composed of two layers: the skeleton layer and the texture layer. In the skeleton layer, a skeleton inpainting algorithm is proposed to produce the skeleton distribution of the missing region. In the texture layer, we restore the content of the missing region using the neighboring area together with the skeleton distribution. Experimental results demonstrate that the proposed method performs well under different conditions.