This invention relates to plaster composition which can be applied on exterior as well as internal walls of the building construction. A particularly preferred form of the invention relates to composition of plaster for exterior application in construction of building walls is derived from byproduct of fertilizer companies i.e.Phosphogypsum having a more water resistance capacity. The composition of said invention consumes large quantities of industrial by-product i.e. phosphogypsum and help in abating pollution and disposal problems associated with phosphogypsum. It provides cost effective and value added product which evolve ecofriendly methods of manufacture of gypsum plaster.