Position a ladder beneath the damaged section of drywall. Climb the ladder until you can comfortably reach the ceiling.
Use a utility knife to cut out the section of drywall that has suffered water damage. Cut out a rectangular or square portion of the drywall, and be sure that your incision covers the span of two ceiling joists, even if the water damage covers a smaller area.
Measure the height and width of your cut in the ceiling. Copy these measurements onto a fresh sheet of drywall with a pencil. Score over the pencil lines on your drywall sheet with your utility knife. Then snap the drywall to break it along the score lines.
Position the cut drywall piece into the hole in the ceiling. Drill the drywall piece into the two exposed ceiling joists with drywall screws, spaced 7 inches apart, to secure it. Allow the screw heads to sink slightly into the drywall when drilling them in.
Prepare drywall compound in a bucket, according to the compound manufacturer’s instructions. Spread a thin layer of the compound over the new drywall piece. Allow the compound to dry fully, then sand it with medium course sandpaper until the surface of the drywall piece feels slightly rough. Apply another thin layer of compound and wait for it to dry fully. Apply a third layer of the compound, allow it to dry, and then sand over the final layer until the drywall’s surface is slightly rough.
Prime and paint over the drywall panel as desired. Choose a paint color that matches your ceiling color to produce the best results.