Kill all vegetation. A general herbicide containing glyphosate will do the job. Wait about four weeks for the herbicide to leave the soil before planting the plugs.
Take a soil sample and take it to your local nursery or county extension office for evaluation.
Adjust your lawn's pH based on the results of the soil sample by adding lime if the soil pH is below 6.0 or sulfur if it's above 7.5.
Till the soil to break it up. The broken soil will be less dense and enable the grass plugs to establish the root structure it will need to survive droughts.
Water the area you'll be plugging thoroughly, at least every other day for a week before planting to soften the soil.
Use a plugging tool to dig holes in a checker-board pattern. Put a scoop of starter fertilizer in each hole. Plant the plug securely, lightly tamping down the soil around the plug. Plugging tools are available at most garden centers.
Water the area daily for about seven to 10 days or until the plugs are well-rooted. Water after 10 days as required to establish your new lawn.
Wait at least two weeks before mowing. Once the plugs are securely rooted, mowing will help the plugs grow together.