Take the furniture out of the room. Lay out tarps to protect the floor.
Run your drywall knife forward over the whole wall, section by section, knocking off any loose material.
Sand the wall lightly with your sander, section by section, to get the surface dull and clean. Use a broom to brush off the dust.
Use your drywall knife to scoop up skim-coat plaster and press it to the wall, near the top. Spread the plaster thinly, setting the knife at a steep angle to the wall, getting the coat paper-thin over most of the surface but filling in the indentations and lines.
Repeat, section by section, doing the whole wall.
Let the plaster dry for eight hours. Sand the surface by hand, lightly, with fine sandpaper. If the wall still doesn’t look flat and smooth, repeat the skim-coat process.