A seamless wall finishing system has a plurality of wall panels which are spaced apart from an exterior wall. The spacing creates an air gap which provides an airflow passage between the exterior wall and the second surface of the wall panels. The wall panels have a mold resistant non-organic thread or yarn wall covering which is adhered to a central portion of a first surface of each of the wall panels. The wall panels define a pair of uncovered areas on opposite sides of each of the plurality of wall panels. A vertically extending seam is created between adjacent wall panels which is filled with a seam tape made from the mold resistant nylon yarn wall covering. An air circulation system is provided for circulating air behind the wall panels. A method of assembling the modular basement wall finishing system is also provided.