Traditional stucco and faux stucco are two completely different products used for walls. Stucco is made up of Portland cement, lime, sand and water and is a hard and dense plaster that is used to coat walls. Faux stucco, on the other hand, is made up of synthetic products and is widely used decoratively to create a grainy, plaster-like finish on exterior or interior walls. While traditional stucco is non-insulating, specific kinds of faux stucco can be made and used for exterior insulation as well. You can create a faux stucco finish at home to change the look of your house with a little expense and effort.