Spread drywall compound over the corner with a flat-edged trowel. Taper the mud out from the corner to thin it down to the wall surface. Also spread compound over the seams at the top where the ceiling meets the corner.
Apply drywall tape over the compound in the corner. Press the tape into the corner at its center. Use the trowel at the middle of the tape and press in toward the corner. Press the trowel out on the sides of the wall to flatten the tape into the compound.
Place tape at the top corners where the side walls meet the ceiling. This tape should overlap the tape that you already applied to most of the ceiling/wall corner.
Spread compound over the tape on one side of the wall and along the wall at the top where the wall meets the ceiling.
Allow the compound to dry for a day, and then apply compound over the tape to the other side of the corner. Also apply compound to the ceiling on either side of the corner where the wall meets it. Let it dry for one day.
Sand the surface of the wall on both sides as well as along the ceiling.
Dust the wall off and apply a second coat of compound. Spread it on both sides this time, and taper it out as you pull away from the corner. Let it dry.
Sand the final coat of compound smooth with a fine 280-grit sandpaper.