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Yes, you can install drywall over plaster, but there are important factors to consider. While it can create a smooth, flat surface, it is often not the best approach. Installing drywall over plaster will increase the wall's thickness, which can cause issues with existing window and door frames that may no longer fit. You might also need to adjust power outlets to keep them accessible. A better, though more expensive, option is to remove the old plaster and lath entirely before installing new drywall. Drywalling directly over plaster seals in the old material, and if any problems arise later, you will need to remove both layers down to the structural beams for repairs. Given the potential complications, this job is best handled by professionals.

There are six levels of drywall finish, from 0 to 5, that refer to the amount of work performed during the finishing process.

Level 0: Drywall is hung with no finishing work.

Level 1: Tape is placed over the seams between drywall sheets.

Level 2: A thin layer of mud is applied over the tape and screw holes. This level is common for utility rooms or walls that will be covered.

Level 3: A full coat of mud covers the screw holes and tape, but the surface is not sanded. This is often used in garages.

Level 4: This is the most common finish for visible interior walls. It involves applying two coats of mud over seams and screw holes, with sanding between each coat, creating a smooth surface ready for flat paint.

Level 5: This is a high-end finish for luxury homes. It includes full taping, mudding, and sanding, plus a final skim coat over the entire surface before painting.

You can paint over plaster, but repair any damage to the plaster first, or the paint will crack and bubble. You should also prepare the surface of the plaster to accept paint, which gives your paint job the best chance of looking good and lasting a long time. Before applying the color you want, apply a coat or two of primer. Additionally, use latex paint, and choose a latex paint with a satin finish for areas with dampness, like bathrooms.

Whether to repair or replace water-damaged plaster depends on the scale of the damage. For small, limited areas, you can often perform a repair yourself. If you choose to paint over small patches, ensure the surface is completely dry and apply a coat of antifungal primer first to prevent mold growth. However, simply painting or plastering over the damage is only a temporary solution that doesn't address the core problem. For more extensive or long-term damage, the plaster may be compromised, and there is a risk of mold. In these cases, it is recommended to remove the damaged section of plasterboard and replace it. You may consider hiring a professional for the repair, and it's worth noting that water damage is often covered by home insurance.