Remove the furniture from the room. Spread out tarps along the base of the wall.
Scrape over the wall with a drywall knife, removing loose paint and other materials. Run a drywall sander over the whole wall, getting it clean and flat.
Use the drywall knife to spread joint compound over the surface of the wall, from top to bottom. Spread it very thinly, with the knife at a sharp angle to the wall, so the plaster fills the indentations and gouges but is transparently thin over the flat spans.
Let the plaster dry for eight hours.
Lightly scrape the surface with your drywall knife to take off any ridges or bumps.
Repeat the skim-coat process, spreading on a second layer, again keeping it paper-thin.
Let the plaster dry. Lightly sand it by hand. If there are still contours on the wall, add a third layer of plaster, and sand it after it dries. Repaint the wall.