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If your insurance company gave you money to repair a plaster ceiling with drywall - they are probably just trying to get of as cheap as possible, and hoping to get away with it. Joining the two systems together or even replacing the entire ceiling with drywall - is usually much more labor intensive, than just plastering the damaged section and blending it ...


Depending on the thickness of the existing plaster, a drywall patch with suitable support behind it (with "mud" or patching compound over it to merge the edges with existing plaster and achieve a smooth surface) may be a perfectly reasonable solution. Getting it really smooth and level so the patch doesn't "telegraph" through the wallpaper will take some ...


I'd use joint compound, and smooth it in with a putty knife as smoothly as possible. Then, when it's dry, use a damp sponge to smooth it over to a paintably smooth surface.

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