Leave the cedar veneer plywood in the basement for at least 24 hours, giving it time to contract or expand as necessary in the basement’s humidity.
Wash the basement walls with soap and water and allow them to dry thoroughly. If necessary, use a broom to sweep down any debris or cobwebs.
Measure the walls that you want to cover using measuring tape.
Cut the cedar veneer plywood into panels that fit your wall using a circular saw.
Use a stud finder to locate the studs in the wall. Mark the studs with a pencil.
Apply a paneling adhesive to the clean wall in a zig-zag pattern between the studs. Paneling adhesive typically comes in a squeezable tube or a gun.
Press the cedar veneer plywood to the wall firmly, holding it in place for several seconds to allow the adhesive to grip.
Allow the adhesive to cure completely. The time this takes varies from adhesive to adhesive. Do not disturb the plywood as the adhesive cures.