Have you been feeling the itch to polish up your unfinished basement with some walls and flooring, but you don’t have the budget for a full drywall installation? Lots of us feel that we could use the extra space in our unfinished basements for something more than storage, but feel like a cozy, comfortable basement is out of reach without the budget for a full finish. Luckily there are a lot of great drywall alternatives that can transform your space for a more finished look without investing in a full renovation.

Divide and Conquer – Create Interior Walls Where you Need Them

I recently began the monumental task of turning my dark, dingy, moist basement into a usable TV and games room (mostly to get the video games out of my living room). At times I felt pretty discouraged, my concrete flooring and strand board walls don’t exactly make for a warm, inviting space for my son’s friends to hang out. I also felt a little overwhelmed with the size of the space and my need for a decent amount of it to be used for storage.

Unfinished basement with curtain wall divider string lights and exposed beams

My first step was dividing the big open floor plan up into two rooms – if I were ever going to finish it, I made a division in my mind where the main wall would go. This gave me a much more manageable area to work with, and once I had a wall solution in place it would hopefully keep the unsightly elements of my basement (storage boxes, well pump, water heater, and septic pipes) out of sight and out of mind. So far, I’ve created these “interior walls” by hanging black curtains, which do a fantastic job of creating the illusion of a smaller, cleaner basement space that holds in heat and doesn’t show off my boxes of old Christmas decorations. I also hung some warm string lights along the ceiling.

Start High and Dry – Address Moisture Issues Before you Begin

If your basement is anything like mine, part of the goal with turning it into usable living space is managing high humidity and moisture issues. Before installing any of these options, you’ll need to check for moisture in your basement and take care of any mildew growth issues beforehand. Otherwise, anything you purchase and install will end up needing to be replaced sooner than you think. Don’t bother trying to clean with bleach – it can be dangerous, and the underlying issue will return to haunt you. Check your vapor barrier and replace any insulation with signs of water damage or mold growth. You’ll have a clean, dry slate to work with and a much fresher feeling room. Even if you don’t have a moisture problem, a dehumidifier is always a great little investment for your basement to prevent water issues before they start. 

Once you’ve established that your walls and flooring are nice and dry and ready for a little decoration, it’s time to think about interior design. What kind of space do you want? Are you looking to make a TV room, games room, or sports den? A sophisticated bar or spare bedroom? Establish what you’ll use the space for, as well as what kind of energy you’d like to cultivate. Then we can think about some basement wall ideas to suit your intention and space. Here are some of the best alternatives to traditional drywall, and some might even elevate your design more than a finished space!

Wood Paneling – Bring the Vintage Staple Into the 21st Century

Wood paneling has stood the test of time as a classic choice for interior walls. Although it can look a little dated without the right styling, it’s a great option for an unfinished space as you don’t need drywall to install it. All you need is a clean, dry surface, so your press board or plywood walls will work just fine to support some inexpensive wood paneling. Although you might be thinking of the 1970’s orangey wood you may have had in your basement as a kid, there are a lot of beautiful modern options available now. If you were to luck out and find some reclaimed original vintage paneling, the best thing about it is that it can be easily painted to suit your style. 

Embrace the Softness of Fabric Walls 

Fabric walls offer a unique blend of coziness and versatility, making them a great choice for unfinished rooms. Whether you’re looking to add texture, warmth, or a pop of color to your walls, fabric panels provide a lot of possibilities for customization. There’s also the added benefit of a little bit of sound insulation. Fabric absorbs sound, and including enough of it in your basement will do a lot to reduce echo and noise in your home. This is especially important if you plan to use your basement as a media room or home theatre. 

You have a few options with fabric wall installation. You could stretch the fabric tightly over existing walls and secure with nails, just make sure you don’t have any exposed insulation or the fibres could adhere to your fabric. To create new interior walls, you could install some simple wooden framing to attach the fabric to. Trim any excess material with a utility knife and add a little wooden trim around the bottom for a more polished look, concealing the edges of the fabric and any wrinkles. Fabric walls may accumulate a little dust and dirt over time, so spot clean any stains or spills promptly using a mild detergent and water solution. Blot the area gently with a clean cloth so you don’t spread the stain. You can also use a handheld vacuum or upholstery attachment to gently vacuum your fabric panels to remove surface dust or pet hair. 

Create Cozy Spaces with Curtains

Curtains aren’t just for windows – they can also be used to divide your basement space where you lack interior walls, adding privacy and warmth. They can be easily opened or closed to create flexible living spaces in your basement, which is especially useful if you have a multipurpose room that serves as a home office, guest bedroom, or recreational area. Curtains can provide a little concealment when needed as well, simply draw the curtains closed to hide clutter or create a cozy nook.

Curtains also add softness and texture to your basement walls, making the space feel more inviting and comfortable. You can select for patterns and colors to complement your existing decor as well, or go for full light neutrals to reflect light and brighten up a dark room with small windows. Go with floor-to-ceiling curtains to elongate the space and create a more dramatic visual impact, making your basement ceilings feel higher and the room more spacious. 

​For curtain installation, tension rods are a quick and easy way to hang them without drilling holes. Simply adjust the rod to fit snugly between the walls or beams and hang your curtains using the built-in rod pockets or curtain rings. For a more permanent solution, consider installing ceiling mounted tracks. These tracks allow you to slide the curtains open or closed effortlessly. 

​One benefit of curtains over fabric walls is that you can easily take them down for machine washing to keep them looking fresh and clean. Follow the manufacturer’s instructions for washing and drying to avoid damaging the fabric. To remove stubborn wrinkles or creases from your curtains, consider using a handheld steamer. Steam cleaning not only removes wrinkles but also refreshes the fabric and removes odors without the need for washing.

​Enhance Your Oriented Strand Board with a Little Color

Oriented strand board (OSB) is a common material used in basement construction, known for its affordability and durability. While it may not be the most aesthetically pleasing option on its own, a coat of paint can transform OSB into a stylish and budget-friendly wall covering. Though the surface of OSB is always going to be a little rough, it’s still essential to fill gaps and holes with wood filler and sand out any particularly rough spots for a smoother finish. Apply a coat of primer to the entire surface of the wood to create a uniform base for the paint, use a primer specifically designed for use on wood surfaces for best results. 

Painted oriented strand board white paint on OSB

Painting your strand board a deep black or dark brown will help the walls melt away, opening up the space a bit and creating more of a blank canvas for hanging art or wall coverings. OSB is significantly cheaper than most other drywall alternatives, and if you already have it installed in your basement then a coat of paint is a great way to embrace what you have. 

Add Artistic Flair with Tapestries and Rugs

Tapestries have a rich history dating back centuries, serving not only as decorative wall hangings but also as functional pieces used to divide rooms and insulate against drafts. Today, tapestries continue to be a popular choice for adding warmth, texture, and personality to interior spaces, making them an excellent option for transforming your unfinished basement. Of course, hand-stitched works will be quite the investment, but there are plenty of budget friendly options online. Check sites like Etsy and eBay for unique pieces, or shop online for printed fabric panels with whatever look you’re after.

You can also hang rugs on your wall for the same effect, and some are specifically designed for use as wall hangings. Pairing tapestries with rugs on your floor adds a very comfy, almost historic vibe. Choose tapestries with traditional motifs or historical scenes to lean into that aesthetic. Just like in days past, a major benefit of using thick textiles is the added insulation. Just adding a tapestry feature on an accent wall or using a hanging rug to divide your room will help keep heat in your living space and possibly cut down on your electric bill. 

You can hang heavy wall hangings with a rod and bracket if your tapestry has a sleeve or loops on the back, or a tension rod for interior dividing “walls”. Velcro strips are another great alternative as they provide a secure hold while allowing for easy removal and repositioning. 

PVC Wall Panels: Durable and Versatile

When it comes to transforming your space, PVC Wall panels offer a very durable alternative to traditional drywall. Made from high-quality plastic, these panels are lightweight, easy to install, and resistant to moisture and mold, making them ideal for basement environments. Unlike drywall, plastic panels are completely waterproof. They won’t swell, warp or rot when it exposed to water or moisture. You can install them directly over existing framing, and once installed, PVC Wall panels require minimal maintenance to keep them looking fresh. The biggest advantage is their versatility and the wealth of design options available. You can get faux brickwork stone, geometric shapes and millwork designs at any hardware store to make your basement look unrecognizable. 

PVC panels on wall faux wood paneling

Before installing PVC wall panels, carefully measure the dimensions of your walls and cut the panels to size using a sharp utility knife or saw. Make sure to leave a small gap around the edges for expansion and contraction. Apply a strong adhesive or construction adhesive to the back of each panel, then press it firmly against the wall, starting from the bottom and working your way up. Use a level to ensure the panels are installed straight and evenly spaced. Once the panels are in position, use screws or nails to secure them to the wall at regular intervals, focusing on the corners and edges for added stability. 

Work With What you Have – Love your Unfinished Basement

It’s easy to forget that basements have the potential to be livable space, and in some cases you can significantly expand the square footage of your home by making small, inexpensive upgrades. Don’t get too caught up in seeking perfection in every space, it’s okay for a basement to feel like one. The more relaxed, laid back energy of an unfinished basement can actually present a lot of unique interior design opportunities that would be overlooked in more polished spaces.

Embrace the rustic vibe of exposed wood beams, the industrial look of a clean concrete floor or layered vintage textures and warm lighting for a very cozy 70’s basement feel. Don’t be afraid to unlock your basements potential without a massive renovation budget, instead it’s time to embrace whatever features you’ve got to work with and look for the unique aesthetic appeal opportunities you’ve got right underneath your feet.