The wall insulating and finishing system is a system for finishing a concrete structure to increase the amount of useable space in a building. The finishing system comprises a plurality of connectable panels. An insulation layer is secured to the rear surface of the panels. The insulation layer has a generally flat front surface that is secured to the rear surface of the panels. The insulation layer also provides an uneven rear surface that is positioned adjacent to the existing basement foundation wall, and a pair of uneven side surfaces. The uneven rear and side surfaces of the insulation layer provide a plurality of grooves or dimples that allow moisture and air to move freely between the wall structure and the insulation layer. The panels and insulation layer are mounted to the existing wall structure by mounting brackets.